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FOX blames Democrats for current financial crisis

Reported by Chrish - September 26, 2008 -

On FOX and Friends, the blame for deregulation falls squarely on Charles Schumer (D-NY) and Chris Dodd (D-CT) for allegedly resisting regulation of Fannie Mae and Freddie Mac in 2005 (when, you'll recall, there was still a Repubican majority in Congress). Goldman Sachs, Phil Gramm, and Henry Paulson's connection remain secrets to F&F viewers. John McCain is presented as a prescient Paul Revere calling for regulation, to the deaf ears of his Democratic counterparts. However....
With video.

The theme on FOX and Friends is that "John McCain can pull this off" (saving the day, the economy, and indeed the world with his bipartisan superpowers) yet they also acknowledge that he has not announced his position - so he can latch onto any compromise and claim to have been the proponent all along. (See below.) Cagey and opportunistic - is that putting country first?

The Friends have totally bought into the whole "maverick" and "across the aisle" persona, ignoring McCain's voting record, 90% in synch with the Bush administration.

Time does not permit me today to document the stream of pro-McCain and, to a lesser degree, anti-Obama and anti-Democrats talking points. Not only were Democrats blamed for the deregulation, the Friends brought up Fannie and Freddie political contributions to Dodd, Obama, and John Kerry as evidence of their complicity with the failed businesses. They failed to note that the preponderance of those donations, especially in Obama's case, were from individuals and not PACs. However, a look at the next three top beneficiaries of Fannie/Freddie donations were Republicans, and their donations were mainly from PACs. Odd how FOX overlooks that; important to note that we have to research EVERYthing they say. Two of those three, by the way, were named in a later program as intrinsic to the House's bailout negotiations - Spencer Bachus and Roy Blunt.

In a report by Bret Baier that credits the Bush administration with "raising red flags" as far back as 2001, Charles Schumer, "a staunch defender," is quoted as saying Fannie and Freddie have done an incredibly good job and are an intrinsic part of making America the best-housed people in the world." Obstructionist!

In that same report, John McCain, allegedly a "co-sponsor" of legislation that would have tightened the reins on Fannie/Freddie, was quoted as saying, on May 25, 2006,

"...For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay."

The report by Baier ended on that note, and the Friends proceeded to laud his foresight and trash Schumer. But In a continuation of the quote, McCain says
"I join as a co-sponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. 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..."

Swell. But according to govtrack.us,

"This bill never became law. This bill was proposed in a previous session of Congress. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that haven't passed are cleared from the books."

The bill as written, introduced in the Senate on Jan 26, 2005, sponsored by Chuck Hagel and co-sponsored by Elizabeth Dole and John Sununu, was abandoned; its sister-bill in the House was roundly denounced by the conservative AEI as "worse than current law." John McCain did not sign on as a co-sponsor until 16 months after the bill was introduced and after it had died in (the Republican-controlled) committee.


Doocy took the obligatory slap at the media for not reporting their talking points - presumably the MSM does a little research before spewing right-wing propaganda, unlike the fools on the curvy couch. It's beyond me how they ever have the gall to accuse other media outlets of bias or being in the tank for someone. This has become so glaringly the Republican cheerleading channel, it's almost funny - except that it's so serious.