Republican Regulators (RE: Mr. McCain & The Economy)
(Written September 18th, 2008 as a NYT Letter-to-the-Editor)
Your recent editorial claims that regulatory inaction “championed” by Republicans and Senator McCain in areas like finance has caused economic “failure”.
Yet, as your newspaper reported in 2003 (“New Agency Proposed to Oversee Freddie Mac and Fannie Mae”), economic culpability does not lie with the Republicans if one believes regulation to be the solution. Interest by the Bush administration and congressional Republicans to strengthen government oversight of Fannie and Freddie met ardent opposition from Democrats who ignored the foretelling reports and the broken lending system.
In 2005, Senator McCain cosponsored the “Federal Regulatory Reform Act” citing “the enormous risk…to the economy as a whole” from Fannie and Freddie.
Senator Obama claims Senator McCain is economically out-of-touch, but Obama’s considerable campaign contributions from Fannie and Freddie totaling $126,349 and his appointment of two former Fannie and Freddie CEOs as economic advisors might make one rethink who is actually out-of-touch.