Obama vs. McCain: Fannie and Freddie

Posted: Thursday, July 17, 2008 9:15 AM by Domenico Montanaro

The Washington Post notes how both campaigns have uncomfortable ties to Freddie Mac and Fannie Mae. "When Fannie Mae and Freddie Mac's stock prices plunged and rumors of their insolvency swirled, the presidential campaigns of Sens. John McCain and Barack Obama released terse statements about the mortgage giants, then went nearly silent. Their responses made sense in political and economic terms. The risks of intervening in the firms' rescue are high, the rewards are scant, and the tentacles of the government-sponsored enterprises reach into both campaigns."

VIDEO: CNBC's Jim Cramer stops by "Morning Joe" to discuss the state of the economy, the mortgage industry and the health of Fannie Mae and Freddie Mac.

More: "Rick Davis, McCain's campaign manager, was president of the Homeownership Alliance, which advocates the expansion of homeownership through low-interest mortgages funded by Fannie and Freddie. Arthur B. Culvahouse Jr., who is heading McCain's vice presidential vetting panel, was a lobbyist for Fannie Mae. Mark Buse, a longtime McCain aide, lobbied for Freddie Mac before returning to McCain's Senate staff."

Moreover: "Obama also has ties to the firms. James A. Johnson, the former head of his vice presidential vetting panel, was a chief executive of Fannie Mae, as was Franklin D. Raines, who said this week that he has been consulting with the campaign on housing issues. Maria Echaveste, a top Clinton White House official whose husband, Christopher Edley Jr., is a close Obama friend and adviser, has lobbied for Freddie Mac, and former commerce secretary William M. Daley, a top Obama backer, was an in-house lobbyist."

The AP: “Inflation has rarely been mentioned in the presidential contest, but that seems likely to change soon. The government reported Wednesday that consumer prices rose in June at the second fastest pace in 26 years. Bank failures suddenly are front-page news as well. The FBI is looking into possible fraud related to home loans made by IndyMac Bancorp Inc., which was taken over Friday by the FDIC… McCain and Obama undoubtedly will return to these issues and offer new proposals, but perhaps the voters' chief question should be: Can they really help?”

The New York Times takes a look at how both campaigns are targeting this key constituency group. "In the past, a common complaint among Hispanic voters has been that politicians tend to view them as a one-issue bloc, concerned only about immigration. Both presidential campaigns are taking care to avoid that trap, emphasizing issues like education, health care and housing as much as, if not more than, immigration and related border issues. They also clearly recognize the role that the Hispanic electorate, its numbers swelling with newly naturalized citizens and a population that skews young, could play in November."

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Comments

"Mortgage giants' tentacles reach into both campaigns"

First of all is the media trying to find news instead of reporting it. The article had no impact on anything short of the housing market is horrible. There was no reason to add it to the campaigns since everyone has connections to it. Homeowners along with probably every Senator, Governor, Rep, past-current-and future President have connections to Fannie Mae and Freddie Mack daddy pimp the little guy out of his money. The news is going to eventually tie the Senate as the main culprit in bringing down Caesar. Report the news as it pertains to the election if you are going to report on the election; the fact that this story was posted under politics lets me know you are fishing. Wasn't even aware Fannie and Freddie were even Octopus.

James Jonah Jameson (Sent Thursday, July 17, 2008 9:22 AM)

Report the real news. McCain has flip flopped and Obama has refined. McCain has lawsuits and Obama has supporters. GOP can't get it because they are out of touch, Dems will fight for a better tomorrow by reaching out to the world today.

James Jonah Jameson (Sent Thursday, July 17, 2008 9:24 AM)

The problem with Fannie and Freddie (cute names, what could wrong with that?) is that government is too involved with each. Lobbying groups pushed idiots like Chuckie Schumer to have banks loan money to borrowers with questionable credit so 'they could be part of the home ownership boom'. Chuckie was more then happy to stand in front of the mics, a normal position for him, and tell everyone how he was responsible for the increased home ownership in the country. Now morons like Schumer want have more regulations. If you would have kept your nose out of the banks in the first place Chuck, we wouldn't have had the problem to begin with.

G. Norman Grant, Brownsville Texas (Sent Thursday, July 17, 2008 9:25 AM)

Parse this:

McCain:

Rick Davis, McCain's campaign manager
Arthur B. Culvahouse Jr., who is heading McCain's vice presidential vetting panel
Mark Buse, a longtime McCain aid and on McCain's Senate staff

All currently working for McCain

Obama

James A. Johnson, the former head
Franklin D. Raines, who said this week that he has been consulting with the campaign
Maria Echaveste, whose husband, Christopher Edley Jr., is a close Obama friend and adviser
William M. Daley, Obama backer

All not currently working for Obama, former head, informal consultant, wife of a friend, backer.

Jim, Chapel Hill, NC (Sent Thursday, July 17, 2008 9:28 AM)

Obama may be getting more coverage, but it's usually not the positive stuff that the media foscuses on. Mean while McCain say's all kinds of off the wall things, things that make no sence, down right lies, not to mention all the flip, flops - and he is getting a free ride. He's even taking credit for the GI Bill, and dissing Senator Webb, and that even went un-reported. Nobody question's his hero status, however, the American people have a right to see McCain's complete Navy record, since that experience, according to McCain, has made him an expert on foreign affairs, and policy. Is McCain getting a free ride, you bet, his wife is too!

Jackieblu Seattle (Sent Thursday, July 17, 2008 9:37 AM)

What is it about knowing someone who worked for a certain company. Should we now start asking people about their personal lives before becoming friends? We do not hear anything about a person who has worked for any company has done well!!!! This is one sided reporting...Plain and Simple!!!

The Real Truth (Sent Thursday, July 17, 2008 9:39 AM)

McCain has flopped so many times on this issue ...Nobody knows where he stands....double double talk...
New name..
McDouble with fries ..think Iran...our troops

BJ, CA (Sent Thursday, July 17, 2008 9:42 AM)

Bank failures, people pulling their money out, and Bush saying "prosperity is just around the corner."
Deja vu all over again.

Class Warrior, D.C. (Sent Thursday, July 17, 2008 9:43 AM)

Bank failures, people pulling their money out, and Bush saying "prosperity is just around the corner."
Deja vu all over again.
Class Warrior, D.C

As opposed to Schumer, who started a run on Indymac with his lies about that banks situation. And, explain to me how raising taxes on every business helps the country - yet, that's exactly what Obama proposes to do. Prosperity is just around the corner in Baracks world, for the government.

Quincy Si, NY NY (Sent Thursday, July 17, 2008 10:00 AM)

Someone did a study on Jim Cramers stock recommendations. For a period of time, they watched Cramer's recommendations, and had a chimp randomly choose stocks. The chimp did much better. Also, the chimp will be subbing for Keith Olbermann next week. Everyong is expecting similar results.

Ronnie Woo, Chicago IL (Sent Thursday, July 17, 2008 10:09 AM)

thie jim cramer guy is filthy rich and he keeps telling the american people that we are making too big of deal with this economic crisis. this guy is a joke

Awkward Exchange between McCain’s press aides and St. Louis Reporter
http://sensico.wordpress.com/2008/07/16/awkward-exchange-between-mccains-press-aides-and-st-louis-reporter/
or
http://sensico2.blogspot.com/2008/07/my-blogs.html

camie (Sent Thursday, July 17, 2008 10:09 AM)

Bank failures, people pulling their money out, and Bush saying "prosperity is just around the corner."
Deja vu all over again.
Class Warrior, D.C. (Sent Thursday, July 17, 2008 9:43 AM)
***************************************************
I'm glad someone else feels Deja Vu.

I was beginning to think I had hallucinated the whole Savings & Loan scandals of the 80's that had Neil Bush paying penalties or facing jail time, Jeb Bush defaulting on loans and McCain's related corruption charges that were linked to it.

Here we go again.... (Sent Thursday, July 17, 2008 10:11 AM)

Look around when you're driving and count the cars with windows down in the heat of summer compared to those up. I've seen women driving Hummers and SUV's with kids in the car and their windows down. You wouldn't have seen that 8 or 1 year/s ago. The republican party has lost it's primary course of fiscal responsibility and isn't about to tack back with War Gnome Keating 5 McCain leading it. Vote Obama

bill, okla (Sent Thursday, July 17, 2008 10:23 AM)

I have noticed the difference in coverage since the end of the primaries.
Obama, everything he says, what his words might convey, what his words could be taken as, what does his words mean in the future, it is an ongoing...
read the crystal ball what does it mean...what could it mean...what did it mean other than what he really said. It is disected, trisected, and reguritated, to be spun around again. Good god...it's like watching sooth sayers.
McCain...can make gaffes, tell outright lies (steeler-gate lie, his marriage license to cindy was issued BEFORE he was divorced, he said WE worked on the veterans bill...UMMM... HE didn't even bother to vote on the bill. etc. etc. etc.) and he gets a GREAT BIG PASS on it all! He never gets asked questions, and when asked simple questions...he never has to answer them, and when his campaign is asked all they do is attack Obama.
BUT, maybe this all benefits Obama in the end...
b/c the voters are learning about him, as He himself explains his veiws and policies, or his cmapaign does, with less attacks on McCain and more info on Obama. Sooo...it may be good thing for Obama to be under so much scrutiny!

I can hear it coming....cries of elder bias, "the media is biased...and it's not fair" they will cry, after the fact. But, they won't cry now cuz they slide under the radar of all news media! Teflon John...might backfire this time! He can't take the heat.. so he's stays out of the kitchen. He does his stump speech, and anseres prepared questions, but struggles immensely on random questions, that weren't prepared by his people. He can't stand on his own without Lieberman telling him what to say...hmmmm.... just like Bush and Cheney!
The farther we go...the more the similarities pop up between McSame and GW!
Interesting.

coninPA (Sent Thursday, July 17, 2008 10:28 AM)

Jim Kramer, an economist, who some say seems to have a repub turn of mind, said that the idea that our problems will be solved, without raising taxes, will bring us to our economic doom without question.

He said that there is not one solvent bank in this country, and we have to bail them out or fall.

People if we are to save our nation, we must accept that fact, ante up, and kick in. Do we really want China holding the paper on us? Remember, we love freedom, they don't.

donna (Sent Thursday, July 17, 2008 10:30 AM)

The things I mentioned happened as the Great Depression began, a perfect storm of screw-ups and corruption. And, who saved the country then? A man who believed that government by and for the people should help the PEOPLE, not the rich and their predatory companies. He eventually opposed Mussolinni, who once told an interviewer he saw facism as just a melding of government serving the corporation's best interests. He begged the interviewer to call his plan "Corporatism" not facism. A rose-Bush by any other name...

Class Warrior, D.C. (Sent Thursday, July 17, 2008 10:34 AM)

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