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Does McCain's involvement with the Keating Five scandal bother anyone considering our current economic crisis?

I have seen all sorts of posts bashing Obama and his so-called "terrorist" links, but have yet to see anyone question McCain's involvement with the huge scandal involving the Keating Five. Now that we're in a dire economic crisis, this issue seems more relevant than the fact that Obama is friends with an English professor (aka. Weather undeground "terrorist.") Watch the video and you'd be hard pressed to support this. McCain was a huge player in this scandal and now we're supposed to believe he'll have our best financial interests at heart once he takes the presidency.

Answer Question

Asked by Anonymous at 1:46 PM on Oct. 7, 2008 in Politics & Current Events

Answers (10)

    Answer by MissAlisabeth at 1:50 PM on Oct. 7, 2008

  • : The Senate Ethics Committee lawyer who investigated McCain already had explained that scandal away -- repeatedly. It was celebrated lawyer Robert Bennett, most famous for defending a certain horny hick president a few years ago.

    "First, I should tell your listeners I'm a registered Democrat, so I'm not on (McCain's) side of a lot of issues. But I investigated John McCain for a year and a half, at least, when I was special counsel to the Senate Ethics Committee in the Keating Five. ... And if there is one thing I am absolutely confident of, it is John McCain is an honest man. I recommended to the Senate Ethics Committee that he be cut out of the case, that there was no evidence against him."

    Answer by Anonymous at 1:55 PM on Oct. 7, 2008

  • Even if McCain had been implicated in the Keating Five scandal -- and he wasn't -- that would still have absolutely nothing to do with the subprime mortgage crisis currently roiling the financial markets. This crisis was caused by political correctness being forced on the mortgage lending industry in the Clinton era.

    Answer by Anonymous at 2:00 PM on Oct. 7, 2008

  • Before the Democrats' affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-Democratic Congress "mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains."
    Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton's secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.

    Answer by Anonymous at 2:01 PM on Oct. 7, 2008

  • Instead of looking at "outdated criteria," such as the mortgage applicant's credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named "Caylee." Threatening lawsuits, Clinton's Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn't a joke -- it's a fact.

    Answer by Anonymous at 2:01 PM on Oct. 7, 2008

  • When Democrats controlled both the executive and legislative branches, political correctness was given a veto over sound business practices.
    In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times reporter Ron Brownstein hailed the Clinton administration's affirmative action lending policies as one of the "hidden success stories" of the Clinton administration, saying that "black and Latino homeownership has surged to the highest level ever recorded."

    Answer by Anonymous at 2:02 PM on Oct. 7, 2008

  • Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn't get out of their loans by selling their houses.

    A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it's gone off.
    In Bush's first year in office, the White House chief economist, N. Gregory Mankiw, warned that the government's "implicit subsidy" of Fannie Mae and Freddie Mac, combined with loans to unqualified borrowers, was creating a huge risk for the entire financial system.

    Answer by Anonymous at 2:03 PM on Oct. 7, 2008

  • Rep. Barney Frank denounced Mankiw, saying he had no "concern about housing." How dare you oppose suicidal loans to people who can't repay them! The New York Times reported that Fannie Mae and Freddie Mac were "under heavy assault by the Republicans," but these entities still had "important political allies" in the Democrats.
    Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats' two most important constituent groups: rich Wall Street bankers and welfare recipients.
    Political correctness had already ruined education, sports, science and entertainment. But it took a Democratic president with a Democratic congress for political correctness to wreck the financial industry.

    Answer by Anonymous at 2:04 PM on Oct. 7, 2008

  • You people will go to great lengths to defend McCain but finger Obama as a Muslin simply because he wore an African outfit. The Keating Five may have had no bearing on the current economic crisis, but it explains a lot about McCain's past involvement with bailing out the elite.

    Answer by Anonymous at 2:05 PM on Oct. 7, 2008

  • the keating 5 does have an affect on this crisis. someone else posted this video. watch it.

    Answer by Anonymous at 3:35 PM on Oct. 7, 2008

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