Ask yourself, do you believe everything you hear?

Is the one who “lied” in fact more trustworthy?

Listen and learn. Here is Barack Obama giving his explanation for the current financial crisis:

While the crisis cannot be totally blamed on the massive amount of mortgage defaults, the bad loans that have been defaulted on, which were purchased and securitized by Fannie Mae and Freddie Mac, were the trigger, a significant factor in this crisis. The mortgage-backed securities that have been called “toxic”, bringing the credit markets grinding to a halt, partly because they are so complicated hardly anyone can determine their value, came directly from Fannie Mae and Freddie Mac.

In addition, Obama, before he became president, endorsed the scheme that generated subprime loans, because the theory went that splitting up the mortgages into securities would bring in needed credit to finance affordable housing, and it would spread the risk thinly, so that foreclosures wouldn’t significantly impact the value of mortgage-backed securities.

Further information from Fox News on Democratic opposition to regulating Fannie and Freddie, and McCain’s attempt to regulate them:

Fool me once…er…Fool me twice?

We as a nation seem prepared to elect Democrats to control congress, and the White House. Are we sure we want to do that? It seems to me we are bringing the fox inside the hen house, all because we think that by getting rid of “Bush’s policies” (which McCain will continue, so says Obama) we will fix what got us in this mess. Ask yourselves, are you sure you’re blaming the right culprits, or are the culprits convincingly shifting blame where it doesn’t belong so they can turn your tragedy into their victory? If you feel like a fool now because you got wiped out in this crisis, how are you going to feel after the election? All I’m saying is be careful what you wish for, because you might get more than you bargained for.

I think Fannie Mae started out as a good idea, making housing more affordable to people. It was started during the Great Depression for that purpose. It had a good run of many decades. The problem is it got tweaked with over those years. Increasingly politicians (and it seems Democrats are the more culpable in this) played with fire and flammable substances around it (to use some metaphors), and this year it finally blew up on all of us. The fault is with those who tried to mess with a good thing, and turned it into something that has sickened our economy, and made us all poorer. So I think we should not give up on the idea of financing affordable housing, and we need to properly hold accountable those who stood in the way of fixing what was broken about that system. Does anyone really think that’s going to get addressed in a Democratic administration, and a Democratic congress, given this evidence??? I think not. More likely they’ll make Wall Street the scapegoat and put the economic kibosh on it, killing any chances we’ll get out of this recession in a speedy fashion. And they’ll tell the banks to do more of the risky lending that helped get us into this mess, in the name of helping the poor (of which there are more already).

Wall Street should have been better regulated (they are a part of the problem, but not the only culprit), but not constrained from producing legitimate wealth, which I think it has done over the years very well. The full story on this has not been told yet (and has not been told here, either, just part of it on which I’ve been able to find material). That has yet to unfold, and I think we will know (hopefully) with time.


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