EleVate Yourself

An Economy in Crisis

Following years of a Republican policy of deregulation in the financial market, the economy is in crisis. Institutions granting bad and fraudulent loans contribute to a real estate boom and record profits for the lenders, but they become overextended and the system falls apart. As a result of the mismanagement and fraud, ordinary citizens lose their jobs, their homes and their life savings. The federal government steps in with taxpayer money to bailout the institutions and prevent a complete economic collapse. Meanwhile, the executives from these institutions keep their mansions and yachts and the spoils of their misdeeds. The year is 1987.
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Just over 20 years ago, it was VP George H.W. Bush in the White House and John McCain was in the Senate. Bush's son, Neil, was a director of the Silverado Savings and Loan which cost taxpayers over a billion dollars when it collapsed. Neil Bush was found guilty of "breaches of his fiduciary duties involving multiple conflicts of interest." Meanwhile Sen. McCain was trying to get his close friend Charles Keating, owner of the Lincoln Savings and Loan, out of a jam.

Keating's operation was under investigation by the Federal Home Loan Bank Board. But since Keating had given McCain significant contributions, invested in a business with Cindy McCain, and flown the McCains around in his jet and let them stay in his lavish vacation retreat in the Bahamas, McCain went to the FHLBB, along with 4 other senators, to pressure them to leave his crony Keating alone. In a series of meetings, McCain and company tried to strongarm the FHLBB into backing off their investigation. When asked if he thought his contributions had given him influence, Keating replied "I want to say in the most forceful way I can: I certainly hope so."

The efforts of McCain and the rest of the "Keating Five" to interfere with an investigation and regulation of a federal agency on behalf of a contributor, resulted in an investigation by the Senate Ethics Committee. Although McCain admitted this was the "worst mistake of his life," he continues to oppose regulation in the financial industry. Was the mistake getting caught?

Now, in 2008, we are in an eerily similar financial crisis and John McCain is running for president. Will his solution be to protect and bailout his cronies on Wall Street who have profiteered our economy into shambles? That's what his partner-in-crime George W. Bush has proposed. We can't afford 4 more years of the same.


Pass this along to everyone you can!

posted by D.J. EleVate @ 10:37 AM