Bob Klahn -> Ed Hulett wrote:

 BK>  ...

 BK>>>  One wonders if mentally ill girl recognizes that Bush shares the
 BK>>>  blame with Graham, one of McCain's advisors, and much of the
 BK>>>  conservative dereg movement.

 EH>> The subprime mess can NOT be blamed on Bush or McCain or
 EH>> Graham. They all warned that if Fannie and Freddie weren't
 EH>> reined in there would be a mess. The CRA and further dereg
 EH>> of Fannie/Freddie by Clinton brought on the crisis.

 BK>  Is that why Bush relaxed the rules around 2004?

He didn't relax the rules on Fannie Mae or Freddie Mack.

 BK>  Or could it be why the Bush administration opposed the Federal
 BK>  Housing Finance reform act of 2005? The reform bill McCain has
 BK>  made so much noise about how he co-sponsored the reform? The
 BK>  Bush administration cited, as one reason, that the act would
 BK>  reduce the commitment of Freddie and Fannie to mortgage
 BK>  financing for low income borrowers. You know, the ones you blame
 BK>  for the mess. (tinyurl.com/2005reform)

Here's a short snippet from the PDF you referred me to:

"The Administration has long called for legislation to create a
stronger, more effective regulatory regime to improve oversight of Fannie
Mae, Freddie Mac, and the Federal Home Loan Banks ("housing
government-sponsored enterprises" or "housing GSEs") and
appreciates the
considerable efforts of Chairman Oxley and Chairman Baker in crafting H.R.
1461. However, H.R. 1461 fails to include key elements that are essential
to protect the safety and soundness of the housing finance system and the
broader financial system at large. As a result, the
Administration opposes the bill."

Notice the reason he opposed the bill.

 BK>  The CRA did not affect the non-bank mortgage brokers who were
 BK>  the main contributors to the sub-prime bubble. Fannie mae and
 BK>  Freddie Mac saw their share of sub-prime mortgages go down
 BK>  during the bubble. They had something on the order of 50% of
 BK>  subprime mortgages before Bush took over, down to about 35% when
 BK>  the meltdown started.

You don't have any idea what you are talking about.

 BK>  CRA mortgages actually had lower default rates than mortgage
 BK>  broker sub-primes.

That's because Fannie and Freddie sold their paper to those institutes.

 BK>  What ties it all together are the deritives, that supposedly
 BK>  reduced the risk by spreading the risk among many investors.
 BK>  However, since derivitives were unregulated, thanks to Phil
 BK>  Graham's ammendment to a late '90s budget bill, the actual
 BK>  burden of derivitives was not, and probably is still not known.

Again, you don't know what you are talking about.

 BK>  That supposedly shared the risk, but it actually tied the
 BK>  investment world together so when one went down big time, it
 BK>  pulled the rest down with it.

Explain how the whole mess then was proceed by Fannie and Freddie going belly up.

 BK>  See what Nobel Memorial Prize Paul Krugman has to say about
 BK>  this. (www.snipurl.com/blamegraham)

Hahahahahahahahahahahahahaha!!!!!!

Paul Krugman is a former advisor to Enron and is a life long Democrat. The
Nobel prize has been politicized for years now. Any organization that will
give their peace prize to an unrepentant terrorist isn't worth paying
attention to.

Ed

-- 
"The ultimate result of shielding men from the effects of folly is
to fill the world with fools." --Herbert Spencer

"The republican is the only form of government which is not
eternally at open or secret war with the rights of mankind."
-- Thomas Jefferson

Linux User# 416016
Linux Machine# 385029

--- Thunderbird 2.0.0.17 (X11/20080925)