John McCain, Rick Davis, and the Glass Housing Crisis

Beware: Lobbyists reflected in the wall may be closer than you think.

By SHARE

What do they say about stones and glass houses?

John McCain today on the current financial crisis (emphasis mine): "The financial crisis we're living through today started with the corruption and manipulation of our home mortgage system. At the center of the problem were the lobbyists, politicians, and bureaucrats who succeeded in persuading Congress and the administration to ignore the festering problems at Fannie Mae and Freddie Mac."

Rick Davis in 2000 talking about Fannie and Freddie: "You can say what you want about free-market distortions, but people like the system because it gets them into houses cheap."

Rick Davis was then in charge of the Homeownership Alliance, a Fannie/Freddie lobbying group that was aimed at stopping "unfounded fears about risks to the housing system," according to its website. (Hat tip to my colleague Liz Wolgemuth for flagging this.)

Rick Davis is now running the McCain campaign. (Oh and—at least 20 McCain fundraisers have lobbied on behalf of Freddie and Fannie in recent years.)

From whence did the problem stem, Senator?