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Tuesday, September 23, 2008
Democrats = Financial Crisis
With all of the economic problems facing Wall Street, one may wonder which political party has the best solution for getting America's economy back on track again. One thing is for certain, the Democrats do not have a clue on how to solve our economic woes. In fact, they want to continue to spend more to bailout Freddie Mac and Fannie Mae. It is no surprise since many Democratic members of Congress receive contributions or special arrangements from these two entities.
Freddie Mac and Fannie Mae are the cause of the current economic crisis. According to a Bloomberg commentary by Michael Hassett of the American Enterprise Institute, Freddie and Fannie was the "key enabler of the mortgage crisis. They fueled Wall Street's efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools. In addition, they held an enormous portfolio of mortgages themselves."
Congress was even warned by former Federal Reserve Chairman Alan Greenspan that if Fannie and Freddie were to continue to grow and receive lower capital, then there would certainly be potential risk to the economy in the future.
However, the Democrats in Congress did not listen and kept on protecting Fannie Mae and Freddie Mac from further regulations. In addition, they also protected the corrupt behavior of the CEOs of both of these financial companies, and why, you ask. Three Democrats: Barack Obama, Hillary Clinton and Christopher Dodd are all beneficiaries of campaign donations from Fannie and Freddie. "Throughout his political career, Obama has gotten more than $125,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac, second only to Dodd, the Senate Banking Committee chairman, who received more than $165,000."
The Democratic Congress keeps on sticking to the same old talking points of change, yet they are the roadblocks to the appropriate change from corruption that America has been seeking. Their economic plans will only protect their corrupt friends and not change the culture in Washington.