Quote:
Originally Posted by cykoe6
McCain cosponsored the bill which would have placed portfolio limits on Fannie and Freddie limiting the amount of mortgage paper they could hold. If the bill had passed and the portfolio limits had been implemented then they would not have collapsed. The bill was blocked by party line opposition by the Democrats in the Banking committee headed by Dodd (while Dodd was getting sweetheart loans from Countrywide and huge campaign contributions from Fannie and Freddie). I guess if the left is unable to face the uncomfortable facts regarding the nature of this crisis they will just try and muddy the waters.
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Limiting the amoung of paper Fannie and Freddie could hold would only limit the number of people who could own homes. It wouldn't have done anything to prevent the current crisis we're in.
Fannie and Freddie had to be taken over because they couldn't raise enough capital to continue buying mortgages from other lending institutions....they basically suffered from the same credit crunch that's crippling the rest of the economy right now.
Unless you can show me where in McCain's proposed bill down payments would have been required for mortgages or proof of income and assets would have been required for mortgages or how it would have regulated CDO's and CDS's so that we could know what they're actually worth, then nothing in his bill could have prevented this crisis.