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Don’t you dare question Barney Frank or his connection to Fannie Mae, Freddie Mac and the Community Reinvestment Act or how that all caused the current economic crisis.  Don’t question Barack Obama who received over $126,000 from Fannie and Freddie over three years, or Chris Dodd who got even more.  Those are not valid questions says Representative Frank… its just racist.

Frank charged that conservatives aim to shift blame for the market meltdown away from Wall Street and toward minority-lending laws like the federal Community Reinvestment Act.

“The bizarre notion that the Community Reinvestment Act . . . somehow is the cause of the whole problem, (conservatives) don’t mind that,” the lawmaker said. “They’re aware that the affordable-housing goals of Fannie Mae and Freddie Mac (and) the Community Reinvestment Act (aim to help) poor people. And let’s be honest, the fact that some poor people are black doesn’t hurt either from their standpoint.”

Up until this year, Fannie Mae and Freddie Mac were involved almost half of the mortgage loans in this country.  In 2008, that percentage was closer to 80%.  A large percentage of those loans that have failed have been alternative or subprime loans… the type of loans that Democrats like Barney Frank and the CRA were pumping.  Fannie and Freddie, thanks to the Democrats in congress, created the market for these loans, encouraged other banks to make these loans, and bought/sold these loans.

These loans helped to exacerbate the decline in housing prices and were a direct cause of the current financial collapse.  They are what has frozen the credit market… the very freeze the federal government is trying to correct with the $700 Billion bailout.

This is not about race.  Repeat that again, THIS IS NOT ABOUT RACE.  Foreclosures are blind, they don’t care about the color of your skin.  Neither does money, nor Wall Street, nor the bank down the street.  Once again, the only people injecting race into politics are the supporters of Barack Obama.  Barney Frank is a toad, a vile unapologetic toad, who rather than take responsibility for his complete and utter failing in regards to Fannie and Freddie is playing racial politics.

Barney Frank has proven, time and time again, that he is not going to allow himself to be accountable… he wasn’t accountable when a gay prostitution ring was uncovered running out of his home, and he won’t held accountable now for failing the American people and causing a financial collapse that led to a $200 Billion bailout of Fannie and Freddie, an $85 Billion dollar bailout of AIG, and a $700B Bailout of our credit markets.

If an illegal enterprise was running out of your home, thanks to the RICO Act, the federal government could hold you responsible or take your assets… even if you didn’t know about it.  And if you were the CEO of a company who kept pumping Fannie Mae and Freddie Mac, encouraging them to do risky loans, even though others were warning you of the danger… you would be fired… and then you would be trotted out before some Congressional hearing and told how pathetic you are and how you made too much money.

Yet Barney Frank is not held to those same standards… apparently he’s not held to any standard at all. Instead of holding him accountable, he has been lauded by Democrats on Capitol Hill for his help crafting the bailout bill.  The very bill that would not have been necessary if Barney Frank had listened to the warnings about Fannie and Freddie in recent years.

No, don’t dare question Barney… he can’t be held accountable for anything.  You just don’t like risky loans because some of them were made to brown people… you racist!

And watch out… this is just another example of what the American people will have to deal with if Barack Obama is given the keys to the White House.  He won’t need goon squads anymore… he’ll just send some toad like Barney Frank or the Associated Press out to label you a racist.

While McCain was trying to fix the problem, Obama took over $126,000 from Fannie & Freddie and turned a blind eye, putting his own political contributions and self interest above our country.  Yeah I know, he supposedly sent a letter to the Treasury Secretary… great.  John McCain actually co-sponsored a bill, went on record trying to get it fixed, was in the papers and on tv.  Where was Obama?  Oh, yeah… counting his money.

Obama could have tried to lead, but he didn’t.  He does what he always does… nothing.  And he was paid for his silence.  As were Chris Dodd and others.

Want to blame someone for this financial mess.  There is a lot of blame to go around… and much of it falls on the shoulders of Barack Obama, his advisers, and other congressional Democrats.

Ken Blackwell has a great column at NRO exploring ACORN, Fannie & Freddie, Barack Obama, and the root causes of this economic meltdown.

Congressional Democrats, and specifically Mr. Obama, are now saying that the problem underlying all this is “deregulation,” pushed by the Republicans. There are two fundamental flaws with this allegation.

First, this is not deregulation. This is not the private sector. Fannie and Freddie are government creations, that pay their executives millions of dollars but are shielded with your tax money from suffering the downside risk of the market. Engage in racetrack-style financing, they must be strictly controlled. Deregulation is about keeping government from hobbling the private sector and hamstringing its ingenuity and productivity. Deregulation does not apply.

Second,  Republicans have tried to rein in Fannie and Freddie. Republican attempts to reform them in 1999 failed. In 2003, when Alan Greenspan testified about how Fannie and Freddie’s loose practices could endanger our financial system, it was Democrat Barney Frank who said these institutions were fundamentally sound, and should be more aggressive in getting loans to low-income people. In 2005, a Republican reform passed the Senate Banking Committee on a party-line vote, only to be blocked by Democrats from passing the full Senate. And in 2006 when John McCain spoke on the Senate floor of the need to reform Fannie and Freddie immediately, Democrats (including Barack Obama) would not respond.

You can also see where Fannie and Freddie look for protection by where they direct their money. Public records show that the top two recipients of Fannie/Freddie campaign contributions are Sens. Chris Dodd and Barack Obama, taking $165,000 and $126,000, respectively. Dodd, who chairs the Senate Banking Committee, and Mr. Obama, who says he’s going to remedy the whole situation.

The American people need to know how we got here.  These are serious times and we are at a potential turning point in this country.  Whatever happens, it is going to hurt, but its time for real leadership and real reform.

But in order to understand how to get out of this mess, we have to understand how we got here.  The Democrats are still trying to funnel money into bogus partisan programs (ACORN) instead of trying to fix the problem and protect the American taxpayer.  This is not George Bush’s fault. This is not John McCain fault.  Both of them tried to fix this mess before it blew up.  But the Democrats were too busy being paid off by Fannie and Freddie, supporting their liberal friends, and refusing to be accountable for their disastrous approach.  They were warned.  But they wanted to keep playing for pay, and all of us got burned.

This is the BEST video I have seen about the crisis. The most accurate, the most detailed, and backed up by facts. Its a little shy of 10 minutes, but is worth watching in its entirety. Watch it, pass it on to your friends. Link to it. Embed it. Do whatever you want. The media won’t tell you the whole truth. But here it is.

Brit Hume’s program had a good summary of how we got into this mess and the voices who tried to avoid it.  President Bush, John McCain, Secretary Snow, Greenspan all tried to get Fannie and Freddie under control and warmed that failing to do so could lead to a broad economic crisis.  Sound familiar?

But the democrats, Barney Frank, Chris Dodd and Chuck Schumer didn’t want to hear any of it.  They were too busy playing politics and turning a blind eye to real concerns.

And what has Barack Obama ever done to fix this mess before it broke?  Nothing.

CHRIS CUOMO, ABC NEWS: A little surprising for you to hear the Democrats saying, “This came out of nowhere, this is all about the Republicans. We had nothing to do with this.” Nancy Pelosi saying it. She signed the ‘99 Gramm Bill. She knew what was going on with the SEC. They’re all sophisticated people. Is that playing politics in this situation?

BILL CLINTON: Well, maybe everybody does that a little bit. I think the responsibility the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was President to put some standards and tighten up a little on Fannie Mae and Freddie Mac.

Republicans did try to fix this. Several Republicans tried.  But the Democrats blocked every attempt, and encouraged riskier and riskier loans.  Now that house of cards has collapsed.

Want change?  Want to throw the bums out?  Make sure you know who the bums are.  Chris Dodd.  Chuck Schumer.  And all of the Democrats who towed the line for Fannie and Freddie, accepting thousands in campaign contributions and turning a blind eye to the mess.

Jim Johnson, failed CEO of Fannie Mae, whose very policies and “leadership” helped create the current mortgage crisis, and got his own sweetheart deal from CountryWide, is STILL advising Barack Obama.

Best line of the day thus far:

Here is the architect of the self-destruction of Fannie Mae constructing the Obama presidency.

Sad, but true.  While Barack Obama and the complicit media try to paint John McCain as Bush 2.0 (which is laughable really).. Barack Obama actually lives his own campaign attack “more of the same”.  We are in an absolute financial crisis in this country that was precipitated by the mortgage and credit collapse.  And Barack Obama is being advised by one of the architects of the failure.

So the John McCain is suspending campaign activities for the moment so he can do his job as United States Senator and work on the current financial crisis and bailout vote.  I saw this on Drudge and didn’t really believe it… then I saw it at Michelle Malkin’s site and the AP, and it kind of sunk in.  McCain is also asking the debate commission to postpone Friday’s debate so they can focus on the bailout bill and have a “leadership” meeting (including President Bush and Barack Obama) to try and work out the details and a path forward.

I can hear the liberals now, claiming McCain is scared or not ready, or throwing a Hail Mary to save his Presidential hopes.

Sorry, I don’t buy it.  Disagree with Senator McCain as I often to, I don’t think this bold action is a political calculation.  Its got a 50/50 shot of killing any chance he has in the election, especially with a hugely biased media framing the story.  But unlike some politicians, I believe John McCain sees his duty as Senator as a solemn promise to work on behalf of the country and not his own self interests.  Just as he would rather lose an election than a war, I believe he would rather lose an election than fail the American people at this trying time.

If you paid attention to the talking heads, it was a foregone conclusion that neither McCain nor Obama would show up for the “bailout vote” as its better to leave the political hot potato alone that get in the middle.  But John McCain is not only going to vote, he’s asking for the ball.  When the game is on the line and you are down by one, you give the ball to the team leader who wants it and isn’t afraid to take the last shot.  John McCain wants to take the shot.

Its a stark contrast from someone who votes present 130 times or has a tendency to skip contentious votes.  But now Obama can’t sit idly by.  Will he take the opportunity to lead as well or will he look for someway to pass the ball?

Time will tell, and the election is likely on the line.  But at least John McCain is putting Country First.

>>John McCain’s Statement

UPDATE: Video

UPDATE: Harry Reid can’t help but play politics and continue being an embarassment. After yesterday trying to get McCain to support the bailout and take leadership in the issue:

“We need, now, the Republicans to start producing some votes for us. We need the Republican nominee for president to let us know where he stands and what we should do.”

Reid is now telling John McCain to stay away.

But yesterday, Reid demanded that the White House made sure the legislation had John McCain’s backing, and Reid floated this bogus piece of news clearly intended to force McCain’s hand: “I got some good news in the last hour or so … it appears that Sen. McCain is going to come out for this.” McCain flatly denied that he had endorsed the plan.

So Harry Reid says that it’s essential that John McCain backs legislation designed to avert the greatest economic meltdown since the Great Depression. And when McCain says the highly problematic legislation, in its current form, is not good enough, Reid tells McCain to stay away from Capitol Hill. Who’s playing politics with economic crisis?

It’s not just Franklin Raines advising Barack Obama, another failed Fannie Mae CEO not only advises Barack Obama but also was on his VP Selection Committee and has raised hundreds of thousands for the campaign.

How can Barack Obama be part of the solution when he is being advised by and taking money from part of the problem?

We said earlier the “talking point of the week” for Obama surrogates was to paint anyone who disagrees with “The One” as racist. Apparently Time Magazine is part of the fold, and their “lead political reporter” is now on the attack over McCain’s ad linking Franklin Raines of Fannie Mae to Barack Obama.

FACT: Fannie Mae & Freddie Mac contributed over $126,000 to Barack Obama, making him second only behind Democrat Christopher Dodd, chairman of the Senate Banking Committee (who is supposed to oversee Fannie, Freddie and the mortgage market).

FACT: Franklin Raines, appointed by Bill Clinton, was CEO of Fannie Mae from January 1999 to December 2004.

FACT: Franklin Raines earned tens of millions of dollars during his time running Fannie Mae, yet investigators cited Raines and other officials in fraud and accounting problems.

FACT: Franklin Raines was ousted from Fannie Mae at the end of 2004 after accounting problems and other management issues forced the company to restate earnings by 9 BILLION DOLLARS.

FACT: Franklin Raines was sued for his role in the Fannie Mae scandal and in a settlement agreed to pay $24.7 Million.

FACT: This problems with Fannie Mae are part of what led to the eventual collapse of Fannie, Freddie and the mortgage market in general.  Fannie and Freddie are in some way responsible for more than half of all mortgages in this country, so when they have problems the entire mortgage market feels it.  Problems caused in part by outright fraud, mis-stated earnings, veiled profits, and a policy of buying new debt while not paying down the old.

FACT:  Due to collapse of Fannie and Freddie, in no small part related to the excellent management of Franklin Raines, the American taxpayer bailed them out at a tune of $200 BILLION.

FACT: The Washington Post reported that Barack Obama was being advised by Franklin Raines in July of this year.  There is no record of Barack Obama disputing that report at the time.

FACT: John McCain released the following ad yesterday, citing the Washington Post article and spectulating about the judgment of a candidate who would seek advice from Franklin Raines who is partly responsible for the pain and economic problems the American taxpayer is facing today.  And who, at the very least, was responsible for Billions in Fraud and had to pay Millions in a settlement because of that fraud.  And even after the fraud, Barack Obama was accepting over $126,000 from the company.

FACT: Now, all of the sudden, Barack Obama is disavowing that he ever received advice from Franklin Raines.  A charge he didn’t bother to make when the Washington Post reported on that advice in July.

FACT: The Times political report (not opinion columnist, reporter) calls the ad racist.

…

How about some “Straight Talk” (I hope Senator McCain won’t mind)?  Just because Franklin Raines is black, and the ad rightfully links the two of them, does not make the ad racist.  Equality means people are equally accountable, regardless of color.  So Barack Obama doesn’t get a pass on having the POOR JUDGMENT to seek, advice from fraudster and mis-manager Franklin Raines because he too is black.  That iss absolutely an absurd charge, and the Times and their “lead political reporter” owe their readers and John McCain and apology.

Barack Obama cited “judgment” as he major qualification to be President.  The very judgment that led him to seek advice from a guy who was responsible for $6 - $9 Billion in fraud that the American taxpayer is now paying for (and then some).  The very judgment that kept him quiet while Chris Dodd was obstructing John McCain’s efforts to reform Fannie and Freddie in 2005.  The very judgment that allowed him to accept over $126,000 in contributions from Fannie and Freddie.  The very judgment that allowed him to sit in a church for 20 years while his pastor blamed the U.S. Government for the AIDS virus.  The very judgment that he used whingen vot 4 times against protections for infants that were born alive, preferring to let them die in soiled utility rooms without any medical care.  The very judgment that he used when working with and accepting contributions from unrepentant American terrorist Bill Ayers.  The very judgment that let him get a sweetheart real estate deal with slumlord Tony Rezko, who has now been convicted on corruption charges.  The very judgment that allowed him to seek earmarks for the hospital where his wife worked and another one for a fundraiser.

Shall I continue?

…

The ad was fair.  The ad was correct.  The ad was not racist.  The question is once again Barack Obama’s judgment, of which there is none.  And because Obama and the leftist lemmings can’t defend his judgment, the return to making racial smears against his opponent. You’ve seen it all week.

Who advises Barack Obama and economic and housing issues?  Franklin Raines, the same guy who got paid $25 Million dollars to run Fannie Mae into the ground.  Instead of looking for solutions to the housing and economic crisis, Barack Obama gets his advice from one of the guys who created the problem.

Change?  I think not.