Both Candidates have a history with Fannie and Freddie, so I decided to find out what exactly that history entails. In researching the recent 'crisis' on wall street, I expected to be bored to tears. What I have found has turned out to be much more compelling than I could have ever imagined. I was even motivated to do some math for the cause! I'm not going to bore you with the reasons that Fannie Mae and Freddie Mac failed or more importantly why they knew they could. The simple answers are they Failed because they applied bad business practice (works every time) and they knew they could because they had a sweet heart deal set up in the 1990's to protect themselves with government insurance. Thank you, Bill Clinton.
Since this crisis will not be resolved before the end of the year, the next president will take on the baggage of Fannie and Freddie and Lehman Brothers and the others that will be lining up if this continues. so once again we are looking at John McCain and Barrack Obama. Since I believe any good politician can say anything to get elected I prefer to use that basic psychological premise, of the best predictor of future behavior is past behavior. So what did I find out?
John McCain along with a handful of other republican senators supported legislation called the Federal Housing Enterprise Regulatory Reform Act of 2005. Go ahead and Google it I'll wait. This legislation was specifically designed to require oversight for Fannie and Freddie and predicted without immediate action that both would fail. The senate democrats blocked this bill from being passed. So John McCain believed strongly enough 3 years ago that Fannie and Freddie were in trouble to support legislation and speak out on behalf of government oversight something that we conservatives take very seriously. That leads me to the conclusion McCain recognized the problem, attempted to prevent the current crisis and was shot down again trying to protect Americans, this time by congress.
Senator Obama took a different approach back in 2005 on the Fannie Mae Freddie Mac situation when the legislation was brought to vote, he just didn't vote. Fair enough, he doesn't want to do his job as senator, that's on the Tax payers of Illinois not me, and I'd like to keep it that way. Because fast forward now to May of 2008. Senator Obama the forward thinking, above the politics as usual, selects Jim Johnson to head his committee to find a vice president. Now who is Jim Johnson you might ask.
Jim Johnson is one of originators of the Fannie Mae Foundation, and served on the board from 1991-2001. He is the chairman of the Kennedy Center for the performing arts. He also served on the board of another name that may be familiar to you Lehman Brothers. Yes, that Lehman Brothers. Johnson also served on the committee for the VP search for Walter Mondale in 1984 and John F. Kerry in 2004. In June, Jim Johnson "resigned" from the Obama camp not because of growing concern over Fannie Mae and Freddie Mac, but because his name came in another lending scandal involving Countrywide mortgage. So just for the recap, Obama the candidate of change, selects Washington money man to head a VP search knowing the man was unsuccessful in two prior attempts. To quote Obama " You can't make this stuff up", check out Johnson's bio-page at www.Perseullc.com/bio . But wait there's more and it involves math!
According to OpenSecrets.org a recent study of senators who received donations from Fannie and Freddy from 1989 until 2008. Senator Barrack H. Obama is the the #2 recipient of money($126,349). #1 is Christopher Dodd (D) (165,400)and #3 is John F. Kerry (D)(111,000). Now here's the part that required math. Both Dodd and Kerry have actually been in the senate since 1989. Barrack took office in January of 2005. So in three years, Sen Obama has managed to take in more dollars from Fannie and Freddy than all of the blood suckers in congress could do in 19 years, with the except of Chris Dodd of course. But just to get the feel for it I divided it down by average amount per year, (Just for fun!) John Kerry averages out to just a measly 5842 per year, while Dodd comes in at 8705.26 per year, these guys are underachievers and at this rate Obama will pass them both by the end of 2008. He rakes in around $42, 116.93 or roughly the amount you have to earn for Obama to feel the need to increase your taxes.
Being a free market girl this mortgage situation has me a little conflicted on any resolution involving regulations, but I can also see how things can get out of control. But I think this crisis allows us to look a little closer at the choices. Which is the better choice to lead our country in economically challenging times? John McCain, a man who spoke out that without oversight these programs were doomed back in 2005. Or Barrack Obama, a man who didn't vote for Change when he had the chance, but instead choose to put the guy who started this whole mess in charge of picking his VP candidate, the first and most important decision of his campaign?( I'm assuming they're close and for what those companies paid him, they should be.) That was a trick question. There is only one choice. John McCain. But it does explain Joe Biden.