Bailout Bill Just Failed in the House...

[janetupnorth]

I don't have details - just caught that headline.

 

[chefsteph07]

Just saw that, it doesn't look good

 

[kaseydee]

And the Dow has fallen over 700pts.

 

[janetupnorth]

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/financial_meltdownThe 2nd to last paragraph about Nancy's comments are interesting...let's just say she has never been a role model to me...

 

[The_Kitchen_Guy]

Just a question - the Democrats control both houses. How can they not pass anything?

 

[janetupnorth]

Just a question - the Democrats control both houses. How can they not pass anything?

Good point, but probably because approx. 40% of Democrats were against it.

It is often forgotten in election years who has been in control this whole time.

 

[PamperedDor]

Ok - so what exactly does this mean? Sorry to sound stupid, but I really don't follow the stocks and stuff like that - I am not the investor in my relationship so I don't really know what all this means to the economy.

 

[thecougchef]

Ok - so what exactly does this mean? Sorry to sound stupid, but I really don't follow the stocks and stuff like that - I am not the investor in my relationship so I don't really know what all this means to the economy.

im right with you Dor. i have no investments, no 401k, no ira, no nothing. haha. my bf does though. & so do my parents.

 

[PamperedDor]

So glad I'm not alone Meghan!! LOL!!

I know where all the paperwork is in case of an emergency - but haven't a clue what it all means - DH said "not to worry, if he goes, I am well taken care of" (pray nothing happens!)

 

[thecougchef]

my parents were just talking about how my littlest brothers college fund took a small hit. they lost me at that point. CORBIN HAS A COLLEGE FUND?! i had to get student loans & scholarships! hahaha.

 

[chefsteph07]

So glad I'm not alone Meghan!! LOL!!

I know where all the paperwork is in case of an emergency - but haven't a clue what it all means - DH said "not to worry, if he goes, I am well taken care of" (pray nothing happens!)

If I were you, I'd find out all the details of "well taken care of"...I'm serious. You should be involved in EVERY aspect of your financial future. At least be informed.

 

[janetupnorth]

So glad I'm not alone Meghan!! LOL!!

I know where all the paperwork is in case of an emergency - but haven't a clue what it all means - DH said "not to worry, if he goes, I am well taken care of" (pray nothing happens!)

I understand what you mean. My DH is in the same situation as you guys. It takes time to keep a spouse informed of every little detail, but I should make sure he knows more details so he wouldn't be totally lost if something happened to me.

 

[Admin Greg]

I'm down 16% with my stocks today :thumbdown:

 

[BethCooks4U]

Just a question - the Democrats control both houses. How can they not pass anything?

My guess would be that they wanted this to be a bi-partisan vote. It's such a big deal and so many people are against it. Personally I think that they should call for a unanimous vote or kill it and just deal with the depression. Maybe that's what we need to get people more realistic. Congress (both sides) is worried that they won't get re-elected if they vote for it but they also are told it's a crisis.

 

[jesusluvsu2005]

Just out of curiosity, my sister keeps talking about China holding so much of our debt. So what happens if they see that we're in such trouble and say they want the debt paid. What happens then?

 

[Admin Greg]

Nearly 100 dems voted against the bill

 

[BethCooks4U]

Just out of curiosity, my sister keeps talking about China holding so much of our debt. So what happens if they see that we're in such trouble and say they want the debt paid. What happens then?

Don't think that that isn't their plan. That's why we need to get our jobs and products back in this country.

 

[janetupnorth]

I'm down 16% with my stocks today :thumbdown:

Yeah, don't look at your 401k at all either. I can't afford stocks yet except my 401k.

But remember, buy low, sell high is the rule so if you can hang in there and the market can, it's looking like a good time to buy or invest more in your 401k.

 

[Admin Greg]

Just out of curiosity, my sister keeps talking about China holding so much of our debt. So what happens if they see that we're in such trouble and say they want the debt paid. What happens then?

They won't, they are currently in economic trouble as well. If they ask for all the money back then they screw the US which ultimately screws the chinese. Anyway, they are collecting a nice interest payment from the US every year.

 

[Liquid Sky]

Ok - so what exactly does this mean? Sorry to sound stupid, but I really don't follow the stocks and stuff like that - I am not the investor in my relationship so I don't really know what all this means to the economy.

It means we are on shaky grounds. DO NOT CHARGE ANYTHING! If you can't afford it buy buying it with cash....don't charge it. Most likely, interest rates will increase, credit card companies will start slashing your available credit limits. We are just too much of a risk right now.

Loans will start to be nearly impossible to get...due to risk. Watch your budget, live within your means, and ride it out. That's about it in a nutshell.

 

[Liquid Sky]

Don't think that that isn't their plan. That's why we need to get our jobs and products back in this country.

AMEN TO THAT! Yeah, how about the gov. stops giving subsidies to business who go across seas???? How about investing in businesses in your own country! Ugh...don't get me started!

 

[PamperedDor]

If I were you, I'd find out all the details of "well taken care of"...I'm serious. You should be involved in EVERY aspect of your financial future. At least be informed.

OH, I appreciate your concern Steph - I know of what are assets are (mostly real estate) as well as all the life insurance policies, I have the attorney who in charge of all our accounts address and number as well - we have some mutual funds - I have all the paperwork - I just don't understand what half of it means!! LOL!!

Thanks for clearing some of it up for me Liquidsky - I rarely charge unless I have to, Never have been a big believer in purchases that I couldn't afford. But thank you so much for the insight!

 

[Hathery]

Holy cow, I SO did not expect this to fail...

 

[chefsteph07]

OH, I appreciate your concern Steph - I know of what are assets are (mostly real estate) as well as all the life insurance policies, I have the attorney who in charge of all our accounts address and number as well - we have some mutual funds - I have all the paperwork - I just don't understand what half of it means!! LOL!!

Thanks for clearing some of it up for me Liquidsky - I rarely charge unless I have to, Never have been a big believer in purchases that I couldn't afford. But thank you so much for the insight!

Glad you know about it but might not understand the jargon..
I used to work for an insurance company and you would be amazed at the number of women whose husband would pass away and the wives had NO idea even where their husbands papers were, what they were entitled to, life insurance policies,etc, the husbands just took care of it and the wives were more stressed than ever. It was sad and that was when I made the decision for myself that I would always KNOW what was going on with everything.

 

[Hathery]

Glad you know about it but might not understand the jargon..
I used to work for an insurance company and you would be amazed at the number of women whose husband would pass away and the wives had NO idea even where their husbands papers were, what they were entitled to, life insurance policies,etc, the husbands just took care of it and the wives were more stressed than ever. It was sad and that was when I made the decision for myself that I would always KNOW what was going on with everything.

It's the exact opposite in our household. If anything ever happens to me, my husband will be lost without a map

 

[The_Kitchen_Guy]

More than 80% of the general public is against this. Paul Ryan, who is from Wisconsin but represents a district other than mine, says he is getting hundreds of calls per day from his constituents, and the range of votes goes all the way from "No!" to "HELL no!"My own humble opinion is that Freddie Mac and Fannie Mae deserve to die, be cremated and buried once and for all. But, since they are quasi-government, that means that as taxpayers, we're on the hook for all the bad loans they guaranteed that made them collapse. (The seeds of their failure were sewn in the Carter Administration, back in the days of mortgage rates over 13%, when the first directives were made to Fannie and Freddie to guarantee loans to people who had no business getting loans. Many bad loans were made because the US Government directed them to make bad loans. Those directives just got worse - and some of you may remember AG Janet Reno threatening action if they did not meet their quota of federal guidelines.)For many years, if you could fog a mirror, you could get a Freddie or Fannie loan, and now the bad loans are all going into foreclosure.As for AIG and the other ne'er do wells - perhaps loan them funds but demand repayment. Don't just hand over the case like a common mugging.

 

[peichef]

I watch A LOT of American news coverage, as well as lots of Cdn news coverage, and I have to say, I don't think this whole story is being well reported on your side of the border. Most economists -- Cdn, American ,European think the bailout is a BAD idea. They don't seem to be showing that in the US, though.

 

[Admin Greg]

More than 80% of the general public is against this. Paul Ryan, who is from Wisconsin but represents a district other than mine, says he is getting hundreds of calls per day from his constituents, and the range of votes goes all the way from "No!" to "HELL no!"

Problem is 80% of the general public (i'd even go much higher) has very very little understanding of what is going on and what the consequences of action and inaction are. When you have investors with one opinion, government with another, economists all divided, how can you know what is right?

 

[PamperedDor]

Problem is 80% of the general public (i'd even go much higher) has very very little understanding of what is going on and what the consequences of action and inaction are. When you have investors with one opinion, government with another, economists all divided, how can you know what is right?

Well, Greg, I think you are totally right - I know I am in that percentage - any chance you could explain some of what it all means? What exactly should we all do to help the situation or defend ourselves against financial ruin?

 

[Admin Greg]

Well, Greg, I think you are totally right - I know I am in that percentage - any chance you could explain some of what it all means? What exactly should we all do to help the situation or defend ourselves against financial ruin?

oh I certainly am in the percentage too. I read a lot of news reports and have CNBC on 24hs but that doesn't mean I have a solid opinion. These things are so complicated. It's just not simply a matter of "getting back" at the banks and hedge funds. A lot is at risk and so many things are connected these days. Another huge compontent to this which shouldn't be is politics. The economics of this problem is hard enough and now you have the wildly unpredictable politics attached to everything.

 

[PamperedDor]

Well who ever inherits this mess is sure to point fingers if they can't solve it - thats a given -

Oh boy - not gonna get political - I have avoided those threads totally for good reason - thanks Greg for an honest answer!

My DH said - we are sticking with the Real estate investments we have - they are holding their own and always have - wish we had the $ to invest in more without loans -

 

[JAE]

I heard tonight that in a Rasmussen poll (sp?) that a very high percentage of investors weren't for the bailout either. It was over 60% not for it. I need to re-listen to the radio program because it sounds like there was an ad in on the bill that people weren't willing to allow. Someone trying to sneak something into the rest of the bill? I'm not sure. I can't find a way to re-listen w/o paying $.

 

[The_Kitchen_Guy]

Problem is 80% of the general public (i'd even go much higher) has very very little understanding of what is going on and what the consequences of action and inaction are. When you have investors with one opinion, government with another, economists all divided, how can you know what is right?

If you took all of the economists in the world and laid them head to foot, they would never reach a conclusion.

 

[The_Kitchen_Guy]

I watch A LOT of American news coverage, as well as lots of Cdn news coverage, and I have to say, I don't think this whole story is being well reported on your side of the border. Most economists -- Cdn, American ,European think the bailout is a BAD idea. They don't seem to be showing that in the US, though.

It's nice to know that I'm not the only one paying attention to the bias in the American media.

 

[Stampaholic1961]

How's this for a Bailout Plan?Instead of bailing out AIG to the tune of $85,000,000,00, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend."

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend."

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage " housing crisis solved".

Repay college loans " what a great boost to new grads"

Put away money for college " it'll be there"

Save in a bank " create money to loan to entrepreneurs".

Buy a new car " create jobs"

Invest in the market " capital drives growth"

Pay for your parent's medical insurance " health care improves"

Enable Deadbeat Dads to come clean " or else"

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG " liquidate it".

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To -Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion!

"We Deserve It Dividend" more than I do the geniuses at AIG or in Washington DC.

And remember, This plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,


PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

 

[Liquid Sky]

Holy crap, Stampaholic!!! That is an INCREDIBLE solution!!!!!!!!!!!!!!!!! Love it! :thumbup:

 

[JAE]

I heard tonight that in a Rasmussen poll (sp?) that a very high percentage of investors weren't for the bailout either. It was over 60% not for it. I need to re-listen to the radio program because it sounds like there was an ad in on the bill that people weren't willing to allow. Someone trying to sneak something into the rest of the bill? I'm not sure. I can't find a way to re-listen w/o paying $.

Ken Blackwell :: Townhall.com :: An ACORN Falls from the Tree

This article is about what I heard on the radio program.

 

[ChefBeckyD]

Ken Blackwell :: Townhall.com :: An ACORN Falls from the Tree

This article is about what I heard on the radio program.

Very interesting...if people will read it.

 

[chefmeg]

I think most Americans realize that this problem won't be resolved with the band-aid of almost a trillion dollars because no one is really admitting to how the problem started and until we do that, no amount of money we throw at will solve the problem.
We have to try to look at this without being partisan~it is Democrats and Republicans that got us here...now we have to use our voices to tell all of them that they have to look to the root of the problem to fix it. Based on the article posted by JAE, it doesn't look like we have to look far to find the "root"!

 

[janetupnorth]

Re: How's this for a Bailout Plan?

Instead of bailing out AIG to the tune of $85,000,000,00, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend."

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend."

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage " housing crisis solved".

Repay college loans " what a great boost to new grads"

Put away money for college " it'll be there"

Save in a bank " create money to loan to entrepreneurs".

Buy a new car " create jobs"

Invest in the market " capital drives growth"

Pay for your parent's medical insurance " health care improves"

Enable Deadbeat Dads to come clean " or else"

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG " liquidate it".

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To -Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion!

"We Deserve It Dividend" more than I do the geniuses at AIG or in Washington DC.

And remember, This plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,


PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

Yeah, won't follow this plan - they can't even do math! 85 billion/200 million is only $425 dollars.

Guess the writer of this plan works on Wall Street!

 

[janetupnorth]

Holy crap, Stampaholic!!! That is an INCREDIBLE solution!!!!!!!!!!!!!!!!! Love it! :thumbup:

Read my comment - you can have $425.

 

[jenne]

Our government has continually overstepped its constitutional bounds, and here we see them doing it again to bail themselves out of overstepping their bounds in the past. The bailout shouldn't happen...why should taxpayers have to bail out banks that are poorly managed. If I had a poorly managed business, the government wouldn't bail me out, and I wouldn't expect them to! The people responsible need to be held responsible, not the rest of us. I have my own mortgage to pay for, I don't need to pay for someone else's mortgage when they should never have gotten the mortgage in the first place! If the people responsible can't cut the bill, let the banks fail. I don't completely understand how it all ties together, but I know I'd rather let them fail and keep the government out of it...it seems nobody ever learns until there's a few rough years. Let it happen...IMO

 

[ChefBeckyD]

Our government has continually overstepped its constitutional bounds, and here we see them doing it again to bail themselves out of overstepping their bounds in the past. The bailout shouldn't happen...why should taxpayers have to bail out banks that are poorly managed. If I had a poorly managed business, the government wouldn't bail me out, and I wouldn't expect them to! The people responsible need to be held responsible, not the rest of us. I have my own mortgage to pay for, I don't need to pay for someone else's mortgage when they should never have gotten the mortgage in the first place! If the people responsible can't cut the bill, let the banks fail. I don't completely understand how it all ties together, but I know I'd rather let them fail and keep the government out of it...it seems nobody ever learns until there's a few rough years. Let it happen...IMO

I think this is the typical, immediate response to this situation. However, the ramifications of NOT having some type of bail out are staggering. I agree, I am not happy at all about having to help pay someone else's mortgage. But, if you are familiar with modern history - do you remember learning about what happened last time banks failed? (The panic of 1929 - the Great Depression of the 1930's...) And this economy is much more global than the economy of the 1920's-30's. If the US economic system failed today, it could very well cause not only a national depression, but a world-wide depression. The fall-out from this is staggering, and could leave you and I in a much worse position than just having to shoulder the burden of someone else's mortgage.

I don't know and don't have the answers - I'm just trying to see both sides of the fence here. I understand why this is such a difficult position for lawmakers right now, and I just pray that they can put aside partisan differences and come up with a plan that will be beneficial.

 

[The_Kitchen_Guy]

As I'm looking at this more and more, I'm starting to understand a little more about what is going on and what needs to be done - at least, as I see it. First, how we got here, with one notable exception, doesn't matter. We're here. We can play the blame game later, shoot 'em all then and sort out the bodies. For now, it doesn't matter, except that Barney Frank was one of the causes and to have him write the bailout bill is like asking Osama bin Laden to write an anti-terrorism law.Second, nothing good happens fast. This is a huge problem and a slap-dash throw-it-together-in-two-days is just wrong. Everything is going to take a long time to straighten out.Third, part of the reason the bill crashed because it was paying the people who caused the crash in the first place, and it just opened the door to more and more and more and more money being pumped into bailouts. There is no excuse for pork in this law, either, none.Fourthly, the biggest issue right now, IMHO, is that the credit marketplace (banks) are in the biggest jam. You can't borrow money to buy a lawn mower right now, and if a bank cannot make loans, its business will grind to a halt and the result is that it will fail. If banks fail, we're in bigger trouble than you can imagine - your deposits are guaranteed to $100,000.00 by the FDIC. Who is the FDIC? You are. A good start would be to repeal the Community Reinvestment Act. (This stupid 1999 law forced lenders to make loans to people that just had no business borrowing money in the first place.)The markets seem to have calmed down, the Dow average is up over 200 points already this morning. The next thing is that the political rhetoric, like Nancy Pelosi's silly, five minute diatribe yesterday, has to stop. If that bill had any chance of passing yesterday, she completely killed any chance of it passing with her little tantrum.I would like to see short-term relief made to the lending market, followed by Congress taking a long look at how to best solve the issue long term. Free up some money for banks, then take your time to figure out the best plan for the long term.

 

[cwinter474]

Stampaholic - I like how you think!!!!

Stampaholic for President!!!!!!

 

[janetupnorth]

Stampaholic - I like how you think!!!!

Stampaholic for President!!!!!!

Ah, did you do the math? It is only $425 per person not $425,000. The author of that cannot do math.

 

[ltkacz]

A GREAT article I came across today at my "other" career.

http://license.icopyright.net/user/viewFreeUse.act?fuid=MTYxMzUyOQ%3D%3d

 

[cwinter474]

Ah, did you do the math? It is only $425 per person not $425,000. The author of that cannot do math.

I saw that, but I still like the way she thinks!

 

[janetupnorth]

I saw that, but I still like the way she thinks!

I'm all for keeping government out - their policies are what caused this to begin with!

Good article ltkacz!

 

[ChefBeckyD]

A GREAT article I came across today at my "other" career.

http://license.icopyright.net/user/viewFreeUse.act?fuid=MTYxMzUyOQ%3D%3d

This was so good - I thought it deserved to be posted in it's entirety!


September 29, 2008
Saddest Thing About This Mess: Congress Had Chance To Stop It

By TERRY JONES INVESTOR'S BUSINESS DAILY


Could the crisis at Fannie Mae-Freddie Mac and the subprime meltdown have been avoided? The answer is yes.



As early as 1992, alarm bells were going off on the threat Fannie and Freddie posed to our financial system and our economy. Intervention at any point could have staved off today's crisis. But Democrats in Congress stood in the way.

As the president recently said, Democrats have been "resisting any efforts by Republicans in the Congress or by me . . . to put some standards and tighten up a little on Fannie Mae and Freddie Mac."

No, it wasn't President Bush who said that; it was President Clinton, Democrat, speaking just last week.

Interesting, because it was his administration's relentless focus on multiculturalism that led to looser lending standards and regulatory pressure on banks to make mortgage loans to shaky borrowers.

Freddie and Fannie, backed by an "implicit" taxpayer guarantee, bought hundreds of billions of dollars of those subprime loans.

The mortgage giants, whose executive suites were top-heavy with former Democratic officials (and some Republicans), worked with Wall Street to repackage the bad loans and sell them to investors.

As the housing market continued to fall in 2007, subprime loan portfolios suffered major losses. The crisis was on — though it was 15 years in the making.

Democrats Blocked Reform

Just as Republicans got blamed for Enron, WorldCom and other early-2000s scandals that were actually due to the anything-goes Clinton era, the media are now blaming them for the mortgage meltdown.

But Republicans tried repeatedly to bring fiscal sanity to Fannie and Freddie. Democrats opposed them, especially Sen. Chris Dodd and Rep. Barney Frank, who now run Congress' key banking panels.

History is utterly clear on this.

After Treasury Secretary Lawrence Summers warned Congress in 1999 of the "systemic risk" posed by Fannie and Freddie, Congress held hearings the next year.

But nothing was done. Why? Fannie and Freddie had donated millions to key congressmen and radical groups, ensuring no meaningful changes would take place.

"We manage our political risk with the same intensity that we manage our credit and interest rate risks," Fannie CEO Franklin Raines, a former Clinton official and current Barack Obama adviser, bragged to investors in 1999.

In November 2000, Clinton's HUD hailed "new regulations to provide $2.4 trillion in mortgages for affordable housing for 28.1 million families." It made Fannie and Freddie take part in the biggest federal expansion of housing aid ever.

Soon after taking office, Bush had his hands full with the Clinton recession and 9/11. But by 2003, he proposed what the New York Times called "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

The plan included a new regulator for Fannie and Freddie, one that could boost capital mandates and look at how they managed risk.

Even after regulators in 2003 uncovered a scheme by Fannie and Freddie executives to overstate earnings by $10.6 billion to boost bonuses, Democrats killed reform.

"Fannie Mae and Freddie Mac are not facing any kind of financial crisis," said Rep. Frank, then-ranking Democrat on the Financial Services Committee.

North Carolina Democrat Melvin Watt accused the White House of "weakening the bargaining power of poorer families and their ability to get affordable housing."

In 2005, then-Fed Chairman Alan Greenspan told Congress: "We are placing the total financial system of the future at substantial risk."

McCain Urged Changes

That year, Sen. John McCain, one of three sponsors of a Fannie-Freddie reform bill, said: "If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole."

Sen. Harry Reid — now Majority Leader — accused the GOP of trying to "cripple the ability of Fannie Mae and Freddie Mac to carry out their mission of expanding homeownership."

The bill went nowhere.

This year, the media have repeated Democrats' talking points about this being a "Republican" disaster. Well, McCain has repeatedly called for reforming the mortgage giants. The White House has repeatedly warned Congress. This year alone, Bush urged reform 17 times.

Some GOP members are complicit. But Fannie and Freddie were created by Democrats, regulated by Democrats, largely run by Democrats and protected by Democrats.

That's why taxpayers are now being asked for $700 billion.