There is a lot of talk out there about how we came to where we are in today's economy.  Most of what you will hear is basically cover your ass explanations.  So I will try to cut through the talk and give some facts.

Most competent financial experts agree that the root cause of the problem started with Fannie Mae and Freddie Mac.

1.) Fannie Mae was created by President Roosevelt in 1938 to provide funds for affordable home ownership as part of the New Deal.

2.) Fannie Mae was privatized 30 years later by President Johnson and created Freddie Mac.

3.) To increase the number of people who qualify for these types of loans President Clinton had the lending requirements loosened in 1999.

4.) The Bush administration continued these loosened standards in the following years.

5.) The Fannie Mae scandal broke in 2004.  Neither the Democrats or Republicans including the Bush Administration took steps to correct the problem.  Why, Franklin Raines, CEO of Fannie Mae knew how to spread the cash to Congress and Bush cronies, see chart below.

6.) In 2005 Bill 190 Federal Housing Enterprise Regulatory Act of 2005 was introduced and never made it pass the "Bill" status. Why see #4 above.

7.) Fannie Mae and Freddie Mac sells off these high risk loans to greedy fast profit Wall street corporations which looked good on the books but hid the fact that this could be reduced to worthless paper in a heartbeat.  The risk factor could be hidden because of the lack of regulation.  Again see #4 above.

8.) Most of the risky loans(Ninja loans) had 3 year index rules, meaning the payment would stay low for 3 years then adjust, typically 3 fold.  People defaulted, home prices dropped and here we are.  How did these type of loans ever get approved?  See #4 above.

How much money and who? So next time you here a politician speak on this issue, you will be a little more informed. Sorry it's so long, but I wanted to include them all.

Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008 Name Office State Party Grand Total Total from
PACs Total from
Individuals Dodd, Christopher J S CT D $165,400 $48,500 $116,900 Obama, Barack S IL D $126,349 $6,000 $120,349 Kerry, John S MA D $111,000 $2,000 $109,000 Bennett, Robert F S UT R $107,999 $71,499 $36,500 Bachus, Spencer H AL R $103,300 $70,500 $32,800 Blunt, Roy H MO R $96,950 $78,500 $18,450 Kanjorski, Paul E H PA D $96,000 $57,500 $38,500 Bond, Christopher S 'Kit' S MO R $95,400 $64,000 $31,400 Shelby, Richard C S AL R $80,000 $23,000 $57,000 Reed, Jack S RI D $78,250 $43,500 $34,750 Reid, Harry S NV D $77,000 $60,500 $16,500 Clinton, Hillary S NY D $76,050 $8,000 $68,050 Davis, Tom H VA R $75,499 $13,999 $61,500 Boehner, John H OH R $67,750 $60,500 $7,250 Conrad, Kent S ND D $64,491 $22,000 $42,491 Reynolds, Tom H NY R $62,200 $53,000 $9,200 Johnson, Tim S SD D $61,000 $20,000 $41,000 Pelosi, Nancy H CA D $56,250 $47,000 $9,250 Carper, Tom S DE D $55,889 $31,350 $24,539 Hoyer, Steny H H MD D $55,500 $51,500 $4,000 Pryce, Deborah H OH R $55,500 $45,000 $10,500 Emanuel, Rahm H IL D $51,750 $16,000 $35,750 Isakson, Johnny S GA R $49,200 $35,500 $13,700 Cantor, Eric H VA R $48,500 $46,500 $2,000 Crapo, Mike S ID R $47,250 $40,500 $6,750 Frank, Barney H MA D $42,350 $30,500 $11,850 Bean, Melissa H IL D $41,249 $34,999 $6,250 Bayh, Evan S IN D $41,100 $16,500 $24,600 McConnell, Mitch S KY R $41,000 $40,000 $1,000 Maloney, Carolyn B H NY D $39,750 $16,500 $23,250 Dorgan, Byron L S ND D $38,750 $30,500 $8,250 Miller, Gary H CA R $38,000 $31,500 $6,500 Rangel, Charles B H NY D $38,000 $14,750 $23,250 Tiberi, Patrick J H OH R $35,700 $32,600 $3,100 Bunning, Jim S KY R $33,802 $29,650 $4,152 Stabenow, Debbie S MI D $33,450 $32,000 $1,450 Chambliss, Saxby S GA R $33,250 $22,500 $10,750 Menendez, Robert S NJ D $31,250 $30,500 $750 Enzi, Mike S WY R $31,000 $27,500 $3,500 Van Hollen, Chris H MD D $30,700 $11,000 $19,700 Landrieu, Mary L S LA D $30,600 $20,000 $10,600 Murray, Patty S WA D $30,000 $23,000 $7,000 Clyburn, James E H SC D $29,750 $26,000 $3,750 Crowley, Joseph H NY D $29,700 $25,500 $4,200 Sessions, Pete H TX R $29,472 $24,000 $5,472 McCrery, Jim H LA R $29,000 $26,000 $3,000 Hooley, Darlene H OR D $28,750 $19,500 $9,250 Royce, Ed H CA R $28,600 $4,000 $24,600 Renzi, Rick H AZ R $28,250 $28,000 $250 Lieberman, Joe S CT I $28,250 $11,500 $16,750 Baucus, Max S MT D $27,500 $21,000 $6,500 Moore, Dennis H KS D $26,550 $25,500 $1,050 Coleman, Norm S MN R $24,690 $12,000 $12,690 Matheson, Jim H UT D $24,500 $24,000 $500 Schumer, Charles E S NY D $24,250 $1,500 $22,750 Durbin, Dick S IL D $23,750 $14,000 $9,750 Rogers, Mike H MI R $22,750 $21,000 $1,750 Lynch, Stephen F H MA D $22,500 $13,500 $9,000 Rockefeller, Jay S WV D $22,250 $5,000 $17,250 Smith, Gordon H S OR R $22,000 $20,000 $2,000 Mikulski, Barbara A S MD D $21,750 $16,500 $5,250 McCain, John S AZ R $21,550 $0 $21,550 Spratt, John M Jr H SC D $21,500 $17,000 $4,500 Brown-Waite, Ginny H FL R $21,000 $21,000 $0 Davis, Geoff H KY R $21,000 $19,500 $1,500 Velazquez, Nydia M H NY D $20,750 $16,750 $4,000 Baca, Joe H CA D $20,500 $20,200 $300 Alexander, Lamar S TN R $20,500 $20,000 $500 Allard, Wayne S CO R $20,250 $0 $20,250 Neugebauer, Randy H TX R $20,000 $20,000 $0 Nelson, Ben S NE D $20,000 $19,000 $1,000 Salazar, Ken S CO D $19,900 $17,000 $2,900 Jefferson, William J H LA D $19,250 $8,500 $10,750 Byrd, Robert C S WV D $18,500 $8,000 $10,500 Hatch, Orrin G S UT R $18,250 $12,500 $5,750 Miller, Brad H NC D $18,000 $16,500 $1,500 Sherman, Brad H CA D $18,000 $12,500

So endyss your saying we shound stay on the some road we are haeded on and keep deRegulating?