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Oct 1, 2008 10:51 pm US/Central

Reality Check: Candidates Play Bailout Blame Game

Reporting
Pat Kessler
(WCCO) On Main Street U.S.A., the presidential candidates say politics don't belong in the public debate over the economic meltdown. However, their television ads say something else.
"John McCain fought to rein in Fannie and Freddie," said an announcer in a John McCain ad. "The Post says: McCain 'pushed for stronger regulation'…'while Mr. Obama was notably silent.'"

 "For eight years, we've been told that the way to a stronger economy was to give huge tax breaks to corporations and the wealthiest," Barack Obama said in his ad. "Cut oversight on Wall Street and somehow all Americans would benefit. Well now we know the truth."

 IN FACT...

 Both McCain and Obama have ties to the mortgage giants Fannie Mae and Freddie Mac.

 Records show McCain has received $21,550 from the mortgage buying organizations and Obama took in $126,349. That makes Obama the number two member of Congress receiving money from Fannie and Freddie.

 But that's NOT THE WHOLE STORY.

 McCain's campaign manager was on the payroll of Freddie Mac until the meltdown in August. A payment of $15,000 a month went to Rick Davis' consulting company -- a total of $500,000.

 Before that, Davis got $2 million from Freddie and Fannie to head up a home mortgage advocacy group that was created to oppose new federal regulations.

 And it's TRUE.

 Obama tapped Fannie Mae executive Jim Johnson to head up his vice presidential selection team. Johnson resigned, under fire, when it was revealed he got preferential treatment for millions of dollars in home mortgage loans.

 The REALITY is this...

 Despite the political spin, both presidential candidates have ties to Freddie and to Fannie that are deep and strong. And expect over the next month, they'll be pointing fingers of blame at each other.

 That's Reality Check.

 To check the resources for this Reality Check click on the links below.
 McCain, Obama Launch Ads on Financial Crisis
John McCain - Television Ads
Barack Obama - Television Ads
OpenSecrets: Fannie Mae and Freddie Mac Invest in Lawmakers
McCain Aide's Firm Was Paid by Freddie Mac
A Federal Probe of Fannie and Freddie

 

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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