"privatizing profit and socializing risk"

http://townhall.com/columnists/ThomasSowell/2008/09/23/a_political_solution?page=2

Tuesday, September 23, 2008
A Political "Solution"
by Thomas Sowell

...
For years the Wall Street Journal has been warning that Fannie Mae and Freddie Mac were taking reckless chances but liberal Democrats especially have pooh-poohed the dangers.

Back in 2002, the Wall Street Journal said: "The time for the political system to focus on Fannie and Fred isn't when we have a housing crisis; by then it will be too late." The hybrid public-and-private nature of these financial giants amounts to "privatizing profit and socializing risk," since taxpayers get stuck with the tab when high-risk finances don't work out.


...
This is certainly part of "the mess in Washington" that Barack Obama talks about. But don't expect him to clean it up. Franklin Raines, who made mega-millions for himself while mismanaging Fannie Mae into a financial disaster, is one of Obama's advisers.

what the heck ... obama's a banker-lover!

http://en.wikipedia.org/wiki/Franklin_Raines

Dispute over alleged advisor role to Barack Obama
U.S. Presidential candidate Senator John McCain has sought to tie Raines to McCain's opponent Barack Obama, in an effort to discredit Obama on economic issues. McCain says that Raines advises Obama. Raines and Obama state that he does not.[14] [15]

Obama is the 2nd highest recipient of contributions from Fannie Mae employees of any American politician, receiving over $126,000 since 1989 - 95% from individuals at Fannie Mae the remainder from PAC contributions.[16]

On July 16, 2008, The Washington Post reported that Franklin Raines had "taken calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters." [17]. Also, in an editorial in August 27, 2008 titled "Tough Decision Coming", the Washington Post editorial staff wrote that "Two members of Mr. Obama's political circle, James A. Johnson and Franklin D. Raines, are former chief executives of Fannie Mae."[18]

On September 18, 2008, John McCain's Campaign, published a campaign ad that quoted the Washington Post's claim that Franklin Raines advises Barack Obama on economic matters. The ad also notes that "Raines made millions and then left Fannie Mae while it was under investigation for accounting irregularities".[19] Both Raines and the Obama Campaign claim that Raines is not an Obama advisor and has never advised Senator Obama. [20] When the claim that Raines was an Obama advisor appeared multiple times in the Washington Post (first July 16th) months before the McCain ad, the Obama campaign didn't seek a correction. However, they did seek a correction from the Post after the ad appeared. [21] [22]

http://townhall.com/Columnists/MichaelBarone/2008/09/27/are_we_at_an_inflection_point

Saturday, September 27, 2008
Are We at an Inflection Point?
by Michael Barone

Barack Obama and other Democrats have used the financial crisis to spin a narrative. The problem, they say, is deregulation and greed. This is not strictly speaking accurate. Obama and the Democrats opposed tighter regulation of the mortgage giants Fannie Mae and Freddie Mac, and John McCain supported it. Unregulated firms like hedge funds have done well, while heavily regulated banks have had troubles.

But the narrative will be advanced by the Obama-loving media ... and by the passage of a giant financial bailout -- er, rescue package. The likelihood, as this is written, is that Obama will be elected president and the Democrats will expand their congressional majorities. Possibly even to the 60 votes they need to effectively control the Senate.

Originally posted by zeeblebot
http://townhall.com/columnists/ThomasSowell/2008/09/23/a_political_solution?page=2

Tuesday, September 23, 2008
A Political "Solution"
by Thomas Sowell

...
For years the Wall Street Journal has been warning that Fannie Mae and Freddie Mac were taking reckless chances but liberal Democrats especially have pooh-poohed the dangers.

Back in 200 while mismanaging Fannie Mae into a financial disaster, is one of Obama's advisers.