Karl Rove and Republican leaders give Delaware candidate O Donell a hard time....

[krisy]

http://www.foxnews.com/politics/2010/09/15/republican-establishment-pledges-support-odonnell-infighting/

I ususally love Karl Rove,but disagree with him on this one. I also think the powers that be in Republican party were acting pretty ignorant last night saying they wouldn't support her. Way to divide the Republican party just to have another "r" in the win column,as opposed to having real conservative values fighting for us.

[Little-Acorn]

Karl Rove and Republican leaders give Delaware candidate O Donell a hard time....

Good. That's nothing compared to the Hard Time the Democrats and mainstream media (but I repeat myself) will give her.... which was Rove's point. She'd better practice on Rove as much as she can.

Her experience to come, will make what Palin went through, seem like a picnic.

[Kathianne]

She does not sound like a great candidate, but considering the state I guess what she says is more important than what she's done, so far. With that said, she was a better choice than known Republican liberal, she won and should be backed.

Now she needs to get her personal stuff in line, same advice to most of the Obama administration. I hope she wins, then we can really judge her.

[Solar]

She does not sound like a great candidate, but considering the state I guess what she says is more important than what she's done, so far. With that said, she was a better choice than known Republican liberal, she won and should be backed.

Now she needs to get her personal stuff in line, same advice to most of the Obama administration. I hope she wins, then we can really judge her.

I have always liked Rove for his intellect, but this merely exposes the RINO in the PUB party, for what they really are all about, power, nothing more.
They see her as a threat to what little hold they have over the party.

Power to the Tea Party, or should I just say "The People"....

Can't believe I just repeated a Hippy mantra of the 60s.:laugh:

[Pagan]

I have always liked Rove for his intellect, but this merely exposes the RINO in the PUB party, for what they really are all about, power, nothing more.
They see her as a threat to what little hold they have over the party.

Power to the Tea Party, or should I just say "The People"....

Can't believe I just repeated a Hippy mantra of the 60s.:laugh:

The Progressive Liberal "New England Republicans" like Rove and the rest of the 'Dubya gang are very threatened, they're circling the bowel after the people have flushed. But like any difficult turd, it's going to take more than one flush to get rid of them.

[krisy]

Rove is getting ripped to shreds on his facebook threads. A lot of people saying their disappointed in him,that he shouldn't support rinos. I'm suprised that he may not have completely recieved the message that the American people have sent. He's too smart not to have, so maybe he is doing what he does best and trying to insure a win.

[REDWHITEBLUE2]

Rove is getting ripped to shreds on his facebook threads. A lot of people saying their disappointed in him,that he shouldn't support rinos. I'm suprised that he may not have completely recieved the message that the American people have sent. He's too smart not to have, so maybe he is doing what he does best and trying to insure a win.

As he should be

[SassyLady]

I like Rove, usually........ but today showed that he isn't listening.

Heard an interview with one of the Tea Party leaders who said Rove came to one of their meetings and wanted to tell them what they had to do to get a win...for the Republicans...which was to back the one that had a better chance of winning.

Rove doesn't get it ... the Tea Party isn't about getting Republicans elected it's about getting liberals out .... and if the liberal is Republican, oh well.



“This isn’t about sending Republicans to Washington, it’s about sending conservatives to Washington,” said Kremer, whose group has worked hard to engineer Tea Party upsets all year.<?XML:NAMESPACE PREFIX = O /><O:P></O:P>

But she said it is a grassroots movement with “fire in the belly” that Republican Party officials and Democrats continue to underestimate.

“You know these seats don't belong to the Republican Party or the state parties. They belong to the people. No matter how much money you can put into these races and the establishment gets behind these candidates, you can't buy the fire in the belly, that passion and that is what is enabling the people to go out and elect these true conservative candidates,” she said.<O:P></O:P>


http://blogs.abcnews.com/thenote/2010/09/tea-party-organizer-on-rove-karl-should-stay-out-of-it.html

[Abbey Marie]

She does not sound like a great candidate, but considering the state I guess what she says is more important than what she's done, so far. With that said, she was a better choice than known Republican liberal, she won and should be backed.

Now she needs to get her personal stuff in line, same advice to most of the Obama administration. I hope she wins, then we can really judge her.

As a resident of Delaware, I'm curious what you meant by "considering the state..."?

Btw, I have heard her speak, both scripted and not, and she sounds both facile and intelligent.

[Kathianne]

As a resident of Delaware, I'm curious what you meant by "considering the state..."?

Btw, I have heard her speak, both scripted and not, and she sounds both facile and intelligent.

Sorry if it sounded like I was putting down DE., I meant it being a 'blue' state, every bit as much as IL. Pretty hard to get candidates when most of the locals are D's.

Abbey, I grant I don't know her, just what is covered in the media. Not much was written about her on my normal sites, until some people started taking sides in the race. What I have heard has to do with taxes, lawsuit, and saying some weird things on sex.

At the same time, she seems very much the fiscal conservative.

[Kathianne]

Abbey, here's one article from today. It's pretty typical of what I've read. Since you are on the ground there, perhaps you can give a better picture?

http://online.wsj.com/article/SB10001424052748703743504575493651785072296.html?m od=WSJ_newsreel_opinion


SEPTEMBER 16, 2010
The Tsunami Heads to Shore

The GOP casualties are over. Now the voter uprising is aiming right at the Democrats.

The pros tell us that 2010 will be a "wave" election, and if that's true then think of Republicans as passengers on a ship who have just watched the tsunami roll over them. A few were washed overboard on the port side, but the GOP is likely to suffer no more losses. Now the huge wave is roaring toward shore, heading directly for the Democrats who are running American government.

Democrats and their media retinue are pointing to the tea party upset in Delaware as a sign of GOP "civil war" that will cost them at least a Senate seat. And so it probably will. Christine O'Donnell is the weakest of the successful tea party primary challengers this year, with little career achievement and a history of suing her friends. She is already a two-time loser in the state that President Obama carried with 62% of the vote...

[PostmodernProphet]

I would rather have a Democrat from Delaware voting for Obama's policies than a Republican from Delaware voting for Obama's policies.......

[krisy]

I saw Rove on Greta last night. He says her home was foreclosed on and that she lied about her college experience? Not sure what thats about,but I'm willing to bet that most people wouldn't hold the home foreclosure against her given how many Americans are in the same boat. She can relate probably better than most politicians.

[PostmodernProphet]

Rove was on Fox News this morning complaining that they introduced him as an "establishment" Republican.....

[revelarts]

Lets face it, Rove is a Crook,
Bought, long ago, by Wall St and Oil and Military Arms dealers. He used me as a republican and he has no concern about the truth, abortion, or civil liberties. I'd like to compare O Donell's personal history to Rove's and see who comes up cleaner. I don't know much about this lady but if the left and the right establishment don't like her then she must be good for the country. may her tribe increase, And God protect her and her family.

[Abbey Marie]

Abbey, here's one article from today. It's pretty typical of what I've read. Since you are on the ground there, perhaps you can give a better picture?

http://online.wsj.com/article/SB10001424052748703743504575493651785072296.html?m od=WSJ_newsreel_opinion

"The" paper here (read: Liberal rag) is already on the attack. Some scathing columns and negative editorials. Still not much in the way of facts, though. Mike Castle refuses to endorse her today. She is quoted as saying that may be the first intellectually honest thing he's done; a reference to his rino status, lol!

As you've said, Delaware is a Dem state, and she has a very tough road ahead. I'll try to report locally.

[Gaffer]

rove the rino. Seems to me she won the republican nomination. The repubs should be standing behind her now in mass. Any that aren't are not repubs in my opinion. The only thing they should ALL be concerned about would be the independents and swinging them over. Seems like for now the repubs are throwing little hissy fits because their golden boy didn't win.

[krisy]

rove the rino. Seems to me she won the republican nomination. The repubs should be standing behind her now in mass. Any that aren't are not repubs in my opinion. The only thing they should ALL be concerned about would be the independents and swinging them over. Seems like for now the repubs are throwing little hissy fits because their golden boy didn't win.

According to Sean Hannity,her opponent has yet to call her and congratulate her. I thought I also heard on the news while I was cooking dinner that O'Donnell ran against Biden at some point.His win was not as large as you would think,can't remember the numbers tho.

Her opponent must have learned how to throw tantrums from McCain

[PostmodernProphet]

According to Sean Hannity,her opponent has yet to call her and congratulate her. I thought I also heard on the news while I was cooking dinner that O'Donnell ran against Biden at some point.His win was not as large as you would think,can't remember the numbers tho.

Her opponent must have learned how to throw tantrums from McCain

2008, Biden beat her 65% to 35%......

[SassyLady]

From Malkin's website:



Ladies of the Right vs. Beltway GOP boyz club; Plus: Fire From the Heartland (http://michellemalkin.com/2010/09/16/ladies-of-the-right-vs-beltway-gop-boyz-club/)

By Michelle Malkin • September 16, 2010 10:25 AM

The times they are a-changin’ — and it’s ladies of the Right who are kicking ass and naming names.
Five items for your viewing and reading pleasure:

* Jeri Thompson (http://spectator.org/blog/2010/09/15/dont-tell-me-she-cant-win-sir) smacks GOP poobahs and pooh-pooh-ers upside the head:

While they may not be intending to be sexist, the message, the attitude and whining sure make many in the GOP look eerily like the elites we are trying so hard to usurp. The sexism issues aside, it’s time for the Washington GOP establishment to man up and stop sulking over losing — no, getting walloped — by a woman they continue to insist is unqualified despite the fact that she has a pretty big win under her belt under pretty difficult circumstances.
I might point out that being trounced by an unqualified (they think) opponent is more a reason, not less, to humbly buck up, congratulate her and move forward. Frankly, it seems an emotional response. Strange, huh? This behavior does not play well with the very grassroots voters they are counting on to put them over the top in November. It’s time they understood these are different grassroots from anything the D.C. crowd has dealt with before.
The fact is, despite all of the Beltway Boys’ attempts to co-opt the Tea Party movement — which to my way of thinking is really a revitalized conservative movement under a much bigger tent — the movement has refused to play the Washington game.
When self-anointed “tea party leaders” have attempted to direct the movement, the citizens themselves have been savvy enough to sniff out many of the charlatans and keep their grassroots organizations focused on achieving their goals of throwing the bums out of office where necessary and appropriate.
Perhaps the reaction to O’Donnell is the result of the Beltway Boys’ understanding that the movement that has been taking hold across the country really is out of their control. Or perhaps they really are intimidated by a woman who has already proven that she can do it without them.


more here:

http://michellemalkin.com/

there is also a video of Palin talking with O'Reilly about Rove and O'Donnell.

[SassyLady]

Well, if nothing else, DE is rid of a RINO .... one that was in cahoots with Soros no less....



The DE Senate GOP primary: Castle, Soros & a health advisory

By Michelle Malkin • September 13, 2010 12:18 PM

On August 20 (http://michellemalkin.com/2010/08/30/delaware-and-the-gop-need-fresh-blood-christine-odonnell-for-senate/), I endorsed Christine O’Donnell for the Delaware Senate GOP primary race. As I said on Sean Hannity’s TV show last week in repeating that endorsement, she is certainly far from perfect (who is?). But I think nine terms are enough for duck-and-hide, cap-and-tax liberal Republican Mike Castle — and it looks like GOP primary voters in Delaware are coming to the same conclusion (http://hotair.com/archives/2010/09/13/odonnell-takes-lead-in-ppp-poll/) as the primary looms tomorrow. I repeat: Entrenched incumbency is not an argument for more entrenched incumbency.

Castle’s campaign questions O’Donnell’s trustworthiness. GOP primary voters need to question (http://www.riehlworldview.com/carnivorous_conservative/2010/09/why-no-interest-in-mike-castles-corrupt-lobbyist-problems.html) Castle’s. He was just one of two Republicans to vote for the $26 billion Edujobs/BigGovJobs bailout (http://michellemalkin.com/2010/08/09/stop-the-biggovjobs-bill/) a few weeks ago. He supported the TARP bailout (http://freedomist.com/2010/08/22/mike-castle-supporter-of-tarp-is-supported-by-tarp-benefactors-delaware-senate-race/) that benefited many of his political donors. And he is the co-founder (http://www.castle.house.gov/Biography/) of the George Soros-tied Republican Main Street Partnership (http://michellemalkin.com/2005/11/28/exposing-the-main-street-republicans/) — which, as I reported in 2005, successfully pressured the House GOP majority to cave in to enviros on the ANWR drilling ban. (http://michellemalkin.com/2005/11/10/letters-to-the-gop/) The Republican Main Street Partnership PAC (http://www.ourcampaigns.com/FECCommitteeDetail.html?FECCommitteeID=4925) supports ACORN-friendly, Big Labor-backing, tax-and-spend, abortion radicals in GOP clothing like Dede Scozzafava. (http://michellemalkin.com/2009/10/16/an-acorn-friendly-big-labor-backing-tax-and-spend-radical-in-gop-clothing/)

This isn’t “Main Street.” This is the road to progressive hell. We already have one too many shady Soros Republicans (http://michellemalkin.com/2008/01/25/meet-the-open-borders-family-mccain-hernandez-soros-and-the-reform-institute/) in the Senate — and John McCain doesn’t need any more company.


http://michellemalkin.com/2010/09/13/the-de-senate-gop-primary-castle-soros-a-health-advisory/

.

[red states rule]

rove the rino. Seems to me she won the republican nomination. The repubs should be standing behind her now in mass. Any that aren't are not repubs in my opinion. The only thing they should ALL be concerned about would be the independents and swinging them over. Seems like for now the repubs are throwing little hissy fits because their golden boy didn't win.

People like Rove think in order to win elections conservatives need to back down from their core beliefs to win over independents and moderates

Loyality to principals and conservative ideology is never considered. They are to wraped up in trying to win over people who never tell us what they believe in

You have Mike Murphy who makes his living doing just that for Republican candidates who is pissed off his RINO guy lost. He has bellowed " "So I must say -- speaking only for myself -- that I'm not thrilled by the Delaware result. I'm a conservative, but I can do basic math. To me the whole thing looks like it came right out of Harry Reid's dream journal. I think the primary voters decided, and it is their decision to make, to toss away a sure-thing GOP Senate pick-up for, well, I'm not sure what. I can say that with a GOP majority now a longer shot, heads are exploding throughout the GOP Senate caucus."

He has told DeMint and Palin to camp out in DE for 2 months and show him how to win the state

I hope they do

I would rather put up a real conservative in a blue state and lose then back a RINO who will vote with Dems. It is better to have a debate over the real issues and real solutions then back off your principals to win

[SassyLady]

I would rather put up a real conservative in a blue state and lose then back a RINO who will vote with Dems. It is better to have a debate over the real issues and real solutions then back off your principals to win
:clap::clap:

[red states rule]

It is time for Rove and other to start paying attention to what the voters are telling them

http://media.townhall.com/Townhall/Car/b/cb091610dAPR20100916044521.jpg

[bullypulpit]

http://www.foxnews.com/politics/2010/09/15/republican-establishment-pledges-support-odonnell-infighting/

I ususally love Karl Rove,but disagree with him on this one. I also think the powers that be in Republican party were acting pretty ignorant last night saying they wouldn't support her. Way to divide the Republican party just to have another "r" in the win column,as opposed to having real conservative values fighting for us.

Hope Karl didn't get a bad case of whiplash from his abrupt change of direction. But, really, how do you support someone who thinks "Pinky and the Brain" was a documentary?

[krisy]

Hope Karl didn't get a bad case of whiplash from his abrupt change of direction. But, really, how do you support someone who thinks "Pinky and the Brain" was a documentary?

I honestly have no idea what your talking about. I do know Pinky and the Brain however.

"What are we going to do today Brain?"

"Same thing we do everyday Pinky,try to take over the world" :laugh2:

Not sure the connection to Rove,feel free to explain.

[krisy]

When my daughter asks "what are we doin today mom?"

I love to tell her "same thing we do everyday Savannah,try to take over the world".......

she gets ticked:coffee:

[bullypulpit]

I honestly have no idea what your talking about. I do know Pinky and the Brain however.

"What are we going to do today Brain?"

"Same thing we do everyday Pinky,try to take over the world" :laugh2:

Not sure the connection to Rove,feel free to explain.

You totally missed the irony...didn't you. "Pinky and the Brain"...Cartoon.

<blockquote>"They are -- they are doing that here in the United States. American scientific companies are cross-breeding humans and animals and coming up with mice with fully functioning human brains. So they're already into this experiment." Christine O'Donnell, 2007</blockquote>

Did she think "Pinky and the Brain" was a D-O-C-U-M-E-N-T-A-R-Y? It seems she's a human with a partially functioning mouse brain.

Not sure of the connection to Rove? Really? Rove trashed O'Donnell Tuesday night.

<object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/4Jlh1EsgS7Q?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/4Jlh1EsgS7Q?fs=1&amp;hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>

And now he embraces her with open arms. Really?

[red states rule]

Hope Karl didn't get a bad case of whiplash from his abrupt change of direction. But, really, how do you support someone who thinks "Pinky and the Brain" was a documentary?

Amazing how liberals and their allies in the media want to go all out NOT to discuss the issues of the day

Why is BP Dems do not want to have a debate on who supports more spending and who does not?

Who supports higher taxes and who does not?

Who supports Obamacare and those who want it repealed?

Perhaps because deep down your side will lose that debate?

Should the election go the way polls suggest it will, the Tea Party folks work will only begin. Then they must hold those elected accountable and their feet to the fire

Unlike you, I am pissed off the current bunch in DC is making future generations slaves to China with the debt they are piling up and the additonal debt they want to add to it

The only way they think they can "win" is to go back to the Clinton scorched earth policy.

[PostmodernProphet]

heard it this week and it's true......in only days the mainstream media had dug up more information about O'Donnell than it did about Obama during his entire campaign......

[bullypulpit]

Amazing how liberals and their allies in the media want to go all out NOT to discuss the issues of the day

Why is BP Dems do not want to have a debate on who supports more spending and who does not?

Who supports higher taxes and who does not?

Who supports Obamacare and those who want it repealed?

Perhaps because deep down your side will lose that debate?

Should the election go the way polls suggest it will, the Tea Party folks work will only begin. Then they must hold those elected accountable and their feet to the fire

Unlike you, I am pissed off the current bunch in DC is making future generations slaves to China with the debt they are piling up and the additonal debt they want to add to it

The only way they think they can "win" is to go back to the Clinton scorched earth policy.

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

[PostmodernProphet]

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

so basically, what you're admitting is that you haven't listened to a single speech given at a Tea Party meeting?......

[krisy]

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

Bully,you don't know what your talking about. You actually believe the tea party isn't interested in the deficit/economy? tsk tsk,your not watching the news are you? oh yea,your probably watching CNN:slap:

Bottom line-I don't care if O'Donnell 's home was foreclosed on(my gosh,how many thousands has that happened to?) I don't care that she talked about witchcraft when she was 18,or that she took "too long" to get through college. I don't care about whatever garbage you all come up with(remember Sarah Palin). I care about how she will vote when it's time for her to do her job. None of those things the media are coming up with matter. You people don't get it!!!

[krisy]

Hope Karl didn't get a bad case of whiplash from his abrupt change of direction. But, really, how do you support someone who thinks "Pinky and the Brain" was a documentary?

I don't know if she has children,but am thinking maybe its a good thing she doesn't know what "Pinky and the Brain" are!!!

[Abbey Marie]

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

Actually, your guy Barney Frank started the ruination of the economy. And Prez Hussein gave it a huge, speedy push downhill the rest of the way.

And Krisy is right about the tea party- they are all about taxation and less gov't interference. How can you not know that?

[red states rule]

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

Are you trying to convince yourself or us BP? The economic meltdown started when Dems wanted to make home ownership a "right" and not something you earned

Note the date BP




September 30, 1999

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.

”Fannie Mae has expanded home ownership for millions of families in the 1990′s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980′s.

http://bsimmons.wordpress.com/2008/10/01/1999-ny-times-fannie-mae-eases-credit-to-aid-mortgage-lending/




Pres Bush tried to warn Dems of what ws happening, but Dems said there was no problem

Again, note the date BP




September 11, 2003
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
WASHINGTON, Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws.

The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session.

After the hearing, Representative Michael G. Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.

''The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.

''These irregularities, which have been going on for several years, should have been detected earlier by the regulator,'' he added.

The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios.

At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past.

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B 63&sec=&spon=&pagewanted=print



Ok BP, now ignore these stories and go off on rant about what the Tea Party is NOT all about

[Pagan]

Gosh Red...History shows us that the Bush administration and a GOP controlled congress wrecked the economy. There's nothing to argue. The facts stand on their own. But if you look closely at the rhetoric coming from the Tea-bagger candidates, those mainstream GOP candidates pandering to their red-meat, wing-nut base, and the conservative punditocracy, they're not arguing about the deficit, or economics at all. They're talking about the "homosexual agenda"...abortion...sex education in schools...It's the culture wars all over again.

Wake up and pay attention Red.

Well yes 'Dubya destroyed the economy, it's rather obvious, but answer this very simple and direct question. I really can't get an answer from ANY Obama supporter, none, ziltch, nothing but silence.

What are your thoughts on Obama embracing and expanding the Bush Doctrine?

[red states rule]

http://www.strangepolitics.com/images/content/168296.jpg