Obama Responds to McCain's "Angry Tirade"

Tommy Vietor, attack puppy:

“On a day when the markets are plunging and the credit crisis is putting millions of jobs at risk, the one truly angry candidate in this race kept up his strategy of ‘turning the page’ on the economy by unleashing another frustrated tirade against Barack Obama. And if John McCain is wondering why he’s lost his credibility, he should look no further than the out-of-context quote he took from a 2007 speech in which Barack Obama warned of the subprime crisis we’re now facing. Since then, John McCain has called for less regulation no fewer than 20 times, proving that he hasn’t learned any lessons from the last banking scandal he was involved in and would give us more of the same failed economic policies as President."

They take apart his use of an old quote after the jump.

Dishonest attack from John McCain in his remarks today in Albuquerque, New Mexico: “Senator Obama was silent on the regulation of Fannie Mae and Freddie Mac, and his Democratic allies in Congress opposed every effort to rein them in. As recently as September of last year he said that subprime loans had been, quote, “a good idea.” Well, Senator Obama, that “good idea” has now plunged this country into the worst financial crisis since the Great Depression. To hear him talk now, you’d think he’d always opposed the dangerous practices at these institutions. But there is absolutely nothing in his record to suggest he did. He was surely familiar with the people who were creating this problem. The executives of Fannie Mae and Freddie Mac have advised him, and he has taken their money for his campaign. He has received more money from Fannie Mae and Freddie Mac than any other senator in history, with the exception of the chairman of the committee overseeing them. Did he ever talk to the executives at Fannie and Freddie about these reckless loans? Did he ever discuss with them the stronger oversight I proposed? If Senator Obama is such a champion of financial regulation, why didn’t he support these regulations that could have prevented this crisis in the first place? He won’t tell you, but you deserve an answer.”

FULL CONTEXT OF OBAMA QUOTE: “And we cannot help but see some reflections of these practices when we look at the subprime mortgage fiasco today. Subprime lending started off as a good idea - helping Americans buy homes who couldn't previously afford to. Financial institutions created new financial instruments that could securitize these loans, slice them into finer and finer risk categories and spread them out among investors around the country and around the world. In theory, this should have allowed mortgage lending to be less risky and more diversified. But as certain lenders and brokers began to see how much money could be made, they began to lower their standards. Some appraisers began inflating their estimates to get the deals done. Some borrowers started claiming income they didn't have just to qualify for the loans, and some were engaging in irresponsible speculation. But many borrowers were tricked into glossing over the fine print. And ratings agencies began rating bundles of different kinds of these loans as low-risk even though they were very high-risk. Most everyone knew that some of these deals were just too good to be true, but all that money flowing in made it tempting to look the other way and ignore the unscrupulous practice of some bad actors.” [NASDAQ Speech, 9/17/07]

26 McCain advisors and fundraisers have been registered lobbyists for Fannie Mae or Freddie Mac

According to Senate lobbying records, 26 McCain advisors and fundraisers have been registered lobbyists for Fannie Mae or Freddie Mac. Seven of them are still registered, and another four terminated their registration in late September as the subprime scandal worsened. [Senate lobbying records]

SIXTEEN FANNIE MAE LOBBYISTS (TWO CURRENTLY LOBBYING)

Wayne L Berman, National Finance Co-Chair*

Aquiles Suarez, Economic Advisor

John Green, Capitol Hill Liaison

Dan Crippen, Health Care Policy Adviser

AB Culvahouse, VP Selection

Kirk Blalock, Young Professionals for McCain National Chair (Terminated 9/22/08)

Kate Hull, Young Professionals for McCain Fundraiser (Terminated 9/22/08)

Aleix Jarvis, Bundler (Terminated 9/22/08)

Kirsten Chadwick, Bundler (Terminated 9/22/08)

Richard Hohlt, Bundler*

Tom Loeffler, Bundler, Former General Chairman, National Finance Chair

Nicholas Calio, Bundler

Alberto Cardenes, Bundler

Michael Kennedy, Bundler

Peter Madigan, Bundler

Alison McSlarrow, Bundler

*currently lobbying (as of 7/31/08, no termination filed as of 10/6/08)

10 FREDDIE MAC LOBBYISTS (FIVE CURRENTLY LOBBYING)

Charlie Black, Senior advisor, Bundler

Bill Timmons Sr., Senior advisor for transition*

Carlos Bonilla, Former Economic Advisor*

Mark Buse, Senate Chief of Staff

David Crane, Senior Policy Adviser

Al D'Amato, Bundler*

Melissa Edwards, Young Professionals for McCain Fundraiser*

Susan Molinari, Women for McCain Steering Committee*

Juleanna Glover Weiss, Bundler

Don Sundquist, Tennessee Co-Chair

*currently lobbying (as of 7/31/08, no termination filed as of 10/6/08)