[RickSp]

This focus on Fannie and Freddie only demonstrates a complete lack of understanding of what has transpired. The right focuses on the GSEs without apparently having a clue as to the role of CDOs or CDSs. In this case, ignorance is not bliss. The bail out of Freddie and Fannie was a reflection of the collapse of securitized sub-prime mortgages, not the cause. In general, they had little to do with writing the bad paper. They were just caught holding it.

The unwillingness to enforce the existing regulations in the mortgage markets, coupled with the de-regulation measures pushed by Phil Graham, McCain's chief economic adviser, among other others, set the stage for the mortgage meltdown. Specifically, the exemption of regulation on derivatives such as credit default swaps, as pushed by Graham, provided the trigger for the entire debacle.

I note that Boeher is still having trouble bringing the house Republican's in line. Now that John McCain has taken credit for the bail-out, he is nowhere to be seen.