Did McCain forsee this economic crisis? - Page 3

40yearfan · September 17th, 2008, 09:21 AM

Quote:

Originally Posted by KloD

Really??? Please show proof that Obama was against it. Please show this "public record". Please show where the Dems blocked it. Please show how this Bill was a "fix" as the problem was already huge.

I'll bet you never even read the Bill. The fact is, the Bill wanted to up the amount to loan to low income buyers. The fact is there was nothing in the Bill that dealt with subprime loans and how these lenders would be regulated. It only established a means to regulate. You can't know what would have been done, if anything.

I posted the facts. You are repeating some rightwing biased BS version. I don't know what else to tell you. I'll wait for your "proof".

Really?

Here's the bill:

http://www.govtrack.us/congress/bill...?bill=s109-190

Here's the shortened version of it:

Quote:

1/26/2005--Introduced.
Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board.
Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting.
Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation.
Excludes the Federal Home Loan Banks from certain securities reporting requirements.
Abolishes the Federal Housing Finance Board.

If you will note items 3 and 4 in this description which address minimum and critical capital levels and a RISK BASED CAPITAL TEST.

From the bill itself:

SEC. 1313A. PRUDENTIAL MANAGEMENT AND OPERATIONS STANDARDS.
`The Director may establish standards, by regulation, order, or guideline, for each enterprise relating to--
`(1) adequacy of internal controls and information systems taking into account the nature and scale of business operations;
`(2) independence and adequacy of internal audit systems;
`(3) management of interest rate risk exposure;
`(4) management of market risk, including standards that provide for systems that accurately measure, monitor, and control market risks and, as warranted, that establish limitations on market risk;
`(5) adequacy and maintenance of liquidity and reserves;
`(6) management of asset and investment portfolio growth;
`(7) investments and acquisitions of assets by an enterprise, to ensure that they are consistent with the purposes of this title and the authorizing statutes;
`(8) overall risk management processes, including adequacy of oversight by senior management and the board of directors and of processes and policies to identify, measure, monitor, and control material risks, including reputational risks, and for adequate, well-tested business resumption plans for all major systems with remote site facilities to protect against disruptive events; and
`(9) such other operational and management standards as the Director determines to be appropriate.'.

This is giving the director complete control over what type of loan they can make and how much risk they are allowed to assume. Couple that with McCains remarks:

Quote:

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

It becomes obvious what this bill was intended to do. Limit their ability to hurt the taxpayers.

Dback Jon · September 17th, 2008, 09:32 AM

So 40 year, since McCain's top economic advisor created the mess, along with McCain, and he still supports those economic policies that CREATED THE WHOLE mess, not just Fannie Mae, he gets no credit.

You are trying to give credit to an ARSONIST for trying to put out the fire in a shed after he set the entire neighborhood on fire.

40yearfan · September 17th, 2008, 09:39 AM

Quote:

Originally Posted by Dback Jon

So 40 year, since McCain's top economic advisor created the mess, along with McCain, and he still supports those economic policies that CREATED THE WHOLE mess, not just Fannie Mae, he gets no credit.

You are trying to give credit to an ARSONIST for trying to put out the fire in a shed after he set the entire neighborhood on fire.

Jon, how can you say that? Did you read any of the stuff I posted? This whole thread is about how McCain attempted to correct the very same economic policy you are talking about, but was thwarted thanks to the people who were in the tank for FM and FM. It's the exact opposite of how you are trying to portray it. And by the way, McCain's top economic adviser wasn't even born yet when this mess started to develope.

Dback Jon · September 17th, 2008, 09:51 AM

Quote:

Originally Posted by 40yearfan

Jon, how can you say that? Did you read any of the stuff I posted? This whole thread is about how McCain attempted to correct the very same economic policy you are talking about, but was thwarted thanks to the people who were in the tank for FM and FM. It's the exact opposite of how you are trying to portray it. And by the way, McCain's top economic adviser wasn't even born yet when this mess started to develope.

Yes, I read your sugar-coated spin trying to absolve McCain of blame in the free-market meltdown that is occur.

And the advisor is Phil Gramm....

Dback Jon · September 17th, 2008, 09:53 AM

And let's not forget that McCain was a prime sponser of the last big government bailout - the Savings and Loan debacle.

McCain's economic track record is one of the worst, ever. For anyone to think that he could lift us out of this mess is laughable.

Mulli · September 17th, 2008, 09:56 AM

Quote:

Originally Posted by Dback Jon

And let's not forget that McCain was a prime sponser of the last big government bailout - the Savings and Loan debacle.

McCain's economic track record is one of the worst, ever. For anyone to think that he could lift us out of this mess is laughable.

Well, he does have a lot of houses, so he must know something.

dreamcastrocks · September 17th, 2008, 09:57 AM

Quote:

Originally Posted by Mulli

Well, he does have a lot of houses, so he must know something.

Yeah, he married up.

Mulli · September 17th, 2008, 09:58 AM

Quote:

Originally Posted by dreamcastrocks

Yeah, he married up.

He is crafty.

DWKB · September 17th, 2008, 10:02 AM

Quote:

Originally Posted by KloD

Really??? Please show proof that Obama was against it. Please show this "public record". Please show where the Dems blocked it.

I guess we're still waiting for this. I searched and did not come up with anything except blog and forum posts where the claim is made unsubstantiated like it is here.

KloD · September 17th, 2008, 10:29 AM

Quote:

Originally Posted by DWKB

I guess we're still waiting for this. I searched and did not come up with anything except blog and forum posts where the claim is made unsubstantiated like it is here.

I know there isn't anything. I wasted my time looking last night, I should have known better.

The funny thing, this Bill that were being told McCain should be hoisted on our shoulders for had nothing to do with the sub-prime loans that were handed out like candy. The ones being defaulted on faster than 40 can jump to defend anything and everything that suggests anyone from the rightwing may be wrong.

DWKB · September 17th, 2008, 10:38 AM

Just floating it out there, but how does a McCain backed privatized SS look right now? The DJIA has lost almost 23% since Oct '07.

nidan · September 17th, 2008, 10:46 AM

In his own words, to answer folks. He wants less regulation for Wall Street anybody else here agree with that ?

Quote:

In a March interview with The Wall Street Journal, he said, "I'm always for less regulation. But I am aware of the view that there is a need for government oversight."

"As far as a need for additional regulations are concerned, I think that depends on the legislative agenda and what the Congress does to some degree, but I am fundamentally a deregulator," he said.

As his campaign has developed and the situation on Wall Street has worsened, McCain gradually has added increasing regulation of the financial sector to his reform themes but has provided few specifics.