Obama - Call Clinton On Demise Of Fannie, Freddie, and Lahman Brothers

While Obama has proved he was wrong about the crashing of Fannie Mae and Freddie Mac. Had he had is staff research, since we know he doesn’t do his own work they would have learned their idol Bill Clinton set the policy, procedures, and signed the HUD bill that laid to the nightmare we face today. He would also know that government oversight of both Fannie and Freddie is limited by congress.

Clinton can duck, he can run, and he can talk all he wants but the facts are this nightmare was his idea. He pushed congress to enact new laws that provided that marginal credit risks could purchase homes. These became known as subprime. This means they do not meet the standards of normal loan qualification standard. Of course people, on the outside thought the word meant “less then perfect” over “less then normal minimum standards.

We all know the Washington Post is a left leaning newspaper that often curves stories to their political belief. However, on June 10th of this year they wrote a pretty solid story on the subject. There are quotes from people who worked in the HUD department, under Bill Clinton that they blew it.

It appears, by the story that President Bush tried to slow down the nightmare. But because of the way Fannie Mae and Freddie Mac is set up by law, they do not have to directly follow the orders of the President. The law with regards to the operation of the two was set up by President Clinton, and approved by Congress.

While the talking media, print media, and Obama shoot their mouths off that this all belongs on President Bush’s desk are plain wrong. Placing blame on McCain is unfair as it would be unknown to him and congress was what Fannie Mae and Freddie Mac where actually doing behind their closed doors.

Here is the link to the Washington Post. It explains in detail how Fannie and Freddie failed but also provides how banks like Lahman Brothers got wrapped into this mess.

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/09/AR2008060902626.html