So, anything going on?

Two visits to the left coast in less than a month, and I have to say that Frisco reminds me of Portland, only I think people shower in Cali.

Also, heads up, expensive Napa wine seems to be overrated. I didn't stop at Edgewood, but I did enjoy meeting my gal Gloria Ferrer. On the other hand, maybe the $180 difference of Opus One eluded me. I was unimpressed by what I thought was flat tasting red water. It was awesome seeing the Grgrich winery and somewhat cool to see Cakebread.


Oh yes, the election. Look, instead of information overload, it's like wanna write overload.

What can you say? Indeed, what would you want to say? I am not Joe the Plumber, but I don't (er, actually "wouldn't") want the AP and the New York Times to go through my life's story if I were unlucky enough to ask Saint Obama a question to which he responded with knee jerk armchair socialist rhetoric. Well, we now know more about Joe and Palin's grandkid's paternity than we do about the Annenberg Challenge.

Nonetheless, every now and then I have a snippet for you, the meager audience of my idiotic blog. An exasperated lib was exasperated that this Ayers stuff keeps coming up. "Haven't we head enough about Ayers?" they whine...

Short answer: no.

Long answer:

To liberals for whom Obama's associations with insane anti-Americans and socialists under whom Obama has shaped his world view are not important, not character flaws, and probably stuff that they already agree with, this is indeed tedious subject matter and the answer would be "yes." It's not a bug, it's a feature.

For people who think that Obama's not a radical, that he's just a wonderchild that the media would love for them to vote for and for the remaining few who would nonetheless probably like to know more about this guy who spent 143 working days in the Senate, most of which was spent running for president and voting "present," the answer is "no, why haven't I heard this stuff before, why is it being whitewashed? Tell us more about this guy."

Indeed, we now know more about Joe's qualifications as a plumber (and evidently his standing to ask questions about tax policy) than we (well, you) know about Obama's resume.

More to come.

But really, what can you do? I don't want my car to get demolished because I put a McCain bumpersticker on it.

You know what? Screw John McCain. No, wait fuck George W. Bush. No, wait, let’s blame this on Clinton. You know what, that Obama guy is starting to appear more and more like a street thug, Chicago-style politician with totalitarian instincts everyday, so screw him too.

First, Clinton. Like many of the problems that W has inherited, the Fannie/Mae, Freddie Mac (FFMM) disaster has Clinton's fingerprints all over it. At least Uncle Bill is so pissed at Obama that he is willing to sandbag the Ozombie campaign with this crisis. So where Ozombie tried to foist the current situation on a banking deregulation bill passed on his watch, Clinton shitcanned that. Even better though is that he also pointed out that Congressional democrats have failed to regulated FFMM. Sweet!

But whatevs, a dishonest democrat? no! A dishonest, pissy Clinton, never! gasp(!)

Let’s complain about my side instead. Ah, yes, the ruthless, street fighting Bush administration and the hot-tempered McCain. Their actions (or lack thereof) have put the lie into that spin. Bush has always seemed to me to take his born again, turn the other cheek nonsense, a little too strongly. McCain on the other hand, seems to be in no mood to do anything so partisan as to actually run for president. So, thanks, guys, you’ve successfully sabotaged yourselves, your party, and therefore the rest of the country. And I say the country because we all know that the DNC is full of children that couldn’t run a country, let alone organize a community. I hope that deep down they know this.

Anyway, in the past few weeks, FFMM has blown up and has – apparently – threatened the economic well-being of this country, arguably placing this great nation, and the world(!), on the precipice of an economic calamity unseen since the Great Depression (during which BTW, in 1929, president FDR went on TV to address the country… way to go. Slow-Joe!).

So, what happened to FFMM? First, since President Carter, social-justice types (i.e., thieves) have been trying to get banks to ignore things like lending standards to loan money to poor people to buy homes they weren’t qualified to buy. Now, big deal, Carter is the worst president evah, bad ideas were his forte. But Clinton stepped this practice up into overdrive and he also helped turn FFMM into the monster institutions they are so as to buy up these risky loans from the banks forced to make them. Apparently, then, FFMM packaged these stupid mortgages into mortgage based securities (MBS’s) that they sold to wall street firms as AAA rated investments. Now, I’ve heard a lot about greed on Wall Street, but can you blame them for buying AAA rated securities? That’s a safe bet, supposedly the safest bet out there.

So, in essence, FFMM was set up to hand out money. And as described in this editorial, apparently, FFMM was also set up to hand out money to various Clinton cronies as well, including F.D. Raines and Jamie Gorelick:

"As soon as Clinton crony Franklin Delano Raines took the helm in 1999 at Fannie Mae, for example, he used it as his personal piggy bank, looting it for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud.

Other Clinton cronies, including Janet Reno aide Jamie Gorelick, padded their pockets to the tune of another $75 million."

Furthermore, FFMM was a little crooked,

"In the end, Fannie had to pay a record $400 million civil fine for SEC and other violations, while also agreeing as part of a settlement to make changes in its accounting procedures and ways of managing risk."

Even better, FFMM was undercapitalized,

"A 1.2% capital ratio (1 divided by 79) is less than half what even the best (Tier 1) banks are required to maintain."

So, because of FFMM’s market position created by their inherent government sponsorship, they wildly overpriced and distorted the market. They were also inexorably leading the market towards a fall that only a few people could have recognized. That is, when you or I bought our houses between 2003 and 2005, we thought improved, rising prices were supported by economic growth and population growth. Nope, it turns out that the market was being distorted by FFMM throwing money at poor people, driving up the prices of everything.

Alas, who could have foreseen these problems?

Only Bush and McCain in particular, and Republicans in general. Ah, so why didn’t they try to fix it? Well, idiot Trent Lott gave split Senate leadership to the DNC after 2000 election, resulting in committee gridlock, that I am sure Sen Dodd (D) took advantage of. Likewise, Barney Frank used his seniority and grassroots efforts (like Obama’s community organize) to silence and intimidate members of his committee. Failure of leadership, but even with the majority, some things weren’t going to change (like the similar thing we are going to encounter with social security).

So, get this, Bush and McCain put in laws that attempted to reform FFMM. And the D’s killed them.

So, why are the tame Bush and tame McCain not trumpeting this? Who the fuck knows. Instead, they decided to own the mess that they were trying to fix, thereby letting Dems like Clinton and Clinton, Dodd, Franks, an Obama off the hook. Good job guys, way to not sully politics with politics. Oh yeah, Bill Frist and Trent Lott hold some blame because they played nice in 2001 and let the losing democrats keep some leadership roles in the Senate, which I imagine helped Dodd kill FFMM regulations.

So, bills concerning FFMM regulation were shot down in committee by democrats. These democrats being recipients of financial contributions from FFMM. Think about that! A government sponsored entity was paying lobbyist to prevent its own regulation. Aside from money, grassroots efforts also prevented the regulation of FFMM. Organizations such as ACORN hit lawmakers with phone calls and other pressures to prevent wayward democrats and weak republicans from going off message. And guess who has both ACORN roots and FFMM money? Obama.

Hope and Change. How about more of the same Democrat Chicago Machine politics.

Here are some of the efforts of the (blamed) Bush White House:

** 2001

April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

** 2002

May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

** 2003
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.

November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)

** 2004

February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)

** 2005

April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

** 2007
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)

** 2008
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)

"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)

"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

As reported in the NYT’s:

September 11, 2003

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

By STEPHEN LABATON

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

or McCain here:

"Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac."

Some selected quotes from obstructionist Dems:

Rep. Barney Frank (D., Mass.): "I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. "

But why read when you can watch and listen: