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To: Hillary'sMoralVoid
They cite a lack of regulation of Wall Street and 'greedy" banks that wanted to take on sub-prime loans to somehow increase their bottom line, and then sell them to other banks.

This is nonsense. Facts to counter these lies:

1. The Gramm-Leach-Bliley Act of 1999 that the Democrats say caused these problems had nothing to do with the creation of subprime risky loans. Clinton and Robert Rubin made the changes to Freddie/Fannie making these loans possible.

2. Democrats supported and voted overwhelmingly for the 1999 deregulation bill. Clinton signed it into law.

3. To get dem support for the combined (house/senate) final version of the 1999 deregulation bill dems and Clinton insisted (even threatened veto) at adding CRA requirements to companies merging under the bill. This probably did accelerate the risky subprime loans but was something that dems demanded.

4. Deregulation had nothing to do with and had no affect to Fannie/Freddie loan rules.

5. When problems were brought to the attention of congress as early as 2001 the dems blocked any attempts to fix them. Numerious times warnings were issued, legislation proposed, about the coming problems. Every time dems insisted that there were no problems with Fannie/Freddie.

6. Legislation co-sponsored by McCain in 2005 was to regulate and oversee Fannie/Freddie. A vote in committee resulted in all Republicans voting for and all Democrats voting against. At that time the R's had a small majority in the senate, it never went to the full senate for a vote because dems opposed and it was far short of the 60 vote support required to pass.

18 posted on 10/04/2008 7:36:22 AM PDT by TruthWillWin
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To: TruthWillWin
The Gramm-Leach-Bliley Act of 1999 that the Democrats say caused these problems had nothing to do with the creation of subprime risky loans.

One 1000 percent wrong, up until this time banks were not allowed to co mingle their funds in stocks and bonds. Banks were banks, not investment stock brokers and stock clearing houses nor were they mortgage brokers. And this needs to be reversed, banks should be banks, and that is all.

20 posted on 10/04/2008 9:01:49 AM PDT by org.whodat ( "the Whipped Dog Party" , what was formally the republicans.)
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