McCain’s Record on Financial RegulationSep 8th, 2008 | By Jonathan | Category: 2008, Featured Articles, Lead Article
If you aren’t concerned about the massive bailout of Freddy Mac and Fannie Mae by the US taxpayers, you should be.
For those of you keeping track, we’re not really bailing out US homeowners; we’re bailing out the bondholders of Freddy mac and Fannie Mae. The predominant bondholder? The central banks of Asian nations. How are we financing this bailout? Using US Government Treasury bonds. Who is buying those? The central banks of Asian nations. For now, at least.
If confidence in US Treasury Bonds falters, we’re all doomed. This is not an exaggeration.
The next president, who in turn will set the regulatory environment, really matters. The best, perhaps the only way, to restore investor confidence in US and global financial institutions is through tight regulation. To be blunt: investors are correct. The Fannie Mae and Freddy Mac bonds were far crappier than they were told. Until everyone in convinced things are worth their claimed worth, things are only going to get worse. We need a president who can take on the financial industries, who is above corruption on this issue above all others.
What follows is a cartoon depicting his involvement in the Keating Five scandal–the last big collapse of US financial institutions, that cost taxpayers over $200 billion (in today’s dollars.)