The lending to low-income borrowers is really just a tiny, tiny fraction of the overall picture. There are an equal number of middle and upper income borrowers who took loans for McMansions and in ballooning urban markets way beyond the values that also make up the base of bad and subprime loans.

Fanny Mae and Freddie Mac are a part of this crisis, however, low income borrowers are just a small fraction and by themselves would never have brought this melt-down to our doorstep. It was the creation of the risky commercial subprime loans, a lack of proper regulation, fueled by a $531 trillion dollar derivatives market that blew the house of cards over.

As to the Hall of Frame for early predictors of the economic collapse of Wall Street, I would add Felix Rohatyn a few years ago described described derivatives as potential “hydrogen bombs.”

Warren Buffett warned 5 years ago derivatives were “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”

Try as right-wing extremists will to make partisan politics and spin this debate in favor of their candidates but if you follow their shallow and twisted logic then you will really miss the important lessons we need to learn to get a healthy economy back on track.

"I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They're not the best investments these days from the long- term standpoint going back. I think they are in good shape going forward. They're in a housing market. I do think their prospects going forward are very solid. And in fact, we're going to do some things that are going to improve them." -- Barney Frank, July 14, 2008 on CNBC (same network as Jim Cramer)

I'm not with you on this Brian. The partisan stuff is going both ways. You say Fox News, I say MSNBC. You say KTLK, I say Air America. Shawn Hannity? How about Al Franken or Randi Rhodes?

NBC pulled part of a skit of their website that took a shot a Frank. You think that had anything to do with NBC being the official Obama network?

Don't even get me going on the dailykos website. Who busted KTLK? Media Matters sponsored by our friend George Soros.

Baker was an idiot to say what he did, Hannity does spew crap that I can't listen to. But the same thing is happening on the left.

The right has made a zillion mistakes the last eight years, no argument there. But be very cautious about sticking your head in the sand and assuming the Dems are the next coming of Superman. Take a long look at how the Dems contributed to this mess, heads should roll there also.

Remember, Bill Clinton signed the repeal of Glass-Steagall and still defends it (this was the start of derivatives mess). His recent quote, "I don't see that signing that bill had anything to do with the current crisis. Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn't signed that bill ... On the Glass-Steagall thing, like I said, if you could demonstrate to me that it was a mistake, I'd be glad to look at the evidence."

LAMBERT: A couple things, Dave. I'm just not buying the "sell" that this economic meltdown BEGAN with Fannie and Freddie. No doubt Barney Frank was being exceedingly generous in his estimation of their health, and there is absolutely no doubt Congress (and the Bush administration) should have been much more aggressive in identifying weaknesses in F&F's system. But this is far -- far -- less a question of loaning money to poor people, as Republicans are charging, than what Wall St. was allowed to do with those mortgages -- with, yes, Bill Clinton, signing the Phil Gramm and Wall St. engineered Modernization act of 2000. It was at that point that derivatives ballooned from less than a trillion dollar "product" to over $62 trillion in '08.

Again, I can't pretend to know anything more about this than what I read. But the people I do read have been warning about exactly this mess for years, and one of them just won the Nobel Prize.

Also, while Al Franken and Randi Phodes may have occasionally gone hyperbolic on their radio show, there is simple no comparison -- none at all, zero -- between Air America and the 600-plus full-power stations pumping out Hannity, Hewitt, Ingraham, etc. etc. etc.

Maybe some day there will be a fact-checking organization for radio. But until then, I'll bet money that Air America's facts check out at much higher percentage than the KTLKs of the world.

Finally, let me be emphatic that Media Matters' monitoring of KTLK is a GOOD thing, and I encourage some Republican website to do the same for liberal talk. Reality is a good thing.

What amazes me is that nobody in the beltway punditocracy ever has to face the consequences of his mistakes. The other night David Frum demanded of Rachael Maddow that she invite Paul Wolfowitz to discuss his plans for Aghanistan. The divine Rachael, being a polite person, simply demurred instead of saying, "Why, the asshole has been wrong about everything." Wm Kristol wipes the slate clean everyday; he blithely contradicts himself at least weekly, yet the NY Times continues to sign his paycheck.

LAMBERT: Well, that's kind of what I'm getting at. We need a kind of Consumer Reports for punditry. Four black circles and you get your license pulled, or are at least required to post a large "caveat emptor" sign next to your name.

Seems to me the time is getting close, where even our lowest common denominator MSM will be open to the idea of intellectual political discourse--but only IF people let their displeasure with the status quo be heard.

I think you offer the reasoning for why intelligence needs to be encouraged as well as anyone, but add Chris Buckley's voice to the call--if I read his 'dad-I've-been-fired' posting correctly.

He expresses a sadness and pining for what he now sees as his father's 50+ year legacy for intellectual conservativism having been usurped by GOP hack users who only talk the talk but do not walk the walk...and then shoot any messenger when called on it publically.

I point out the GOP, because intelligent conservatism DOES play a valuable role in balancing Democratic liberalism.

I also believe progressivism should not be solely attached to the Democratic party. In fact, I think the greatest failure in the past decade is the complete lack of Republican action and investment in alternative energy...is T. Boone Pickens the only GOP guy with any balls in this country? Why do all the other GOP investors have to wait for some Bill loaded with incentive pay before they act on developing good energy alternatives? Did Edison wait for a government grant before perfecting the light bulb? Did Ford wait for one before creating the assembly line? But, I digress.

This great sense of political denial of reality, of trying to hide any sign of problem and keep control over any discussion is hurting america--yet they still want to label the attempts at intelligent conversation as betrayal or unpatriotic.

They seek to put people into lockstep to blindly and quietly follow the GOP party EVEN when it no longer reflects the policy and ideology upon which it was built, again EVEN when it is proving ineffective and out of touch with reality.

Buckley has broken publically, complete with light jabs at his unseeing once-friends. You lash out post after post at the similar lack of intelligence in politics and lack of helpful discourse in our media.

For my part, I would like to throw my flag on our leaders, who have thrown up smokescreens instead of informed people, who have not taken the time to make good choices, who have not kept a vision of the betterment of our country as their goal, to use that as their measure of major bills and when people weren't understanding the big picture, they should have taken the time to inform us and bring us on board.

But more so, I want to call out people, to demand open discussion and open government. Stop the status quo--denial is rampant, hidden agendas the rule, obfuscation is rewarded, laws and ideologies are broken quietly...and we the people allow it to happen with our apathy.

I am glad you are demanding intelligence, and I am signing on with you, and I challenge your readers to sign on too. To use your (commentor's) voice, don't hide it, don't go red-blue, don't leave it hang here to swing in the wind. Speak up for a better america people.

If not...ask yourself what you are saving it for? If not you, then who are you waiting for?

LAMBERT: Admirable passion, Other Mike. As I've sad before -- probably way too often -- even on a commercial basis, I'm astonished the KTLKs of the world can sell this stuff. Can you imagine the intellectual chops of the crowd that wants to believe Magic Johnson faked AIDS, and that evolution is a hoax, and Saddam shipped all the WMDs to Syria right before the invasion? And yet, I can tell you from first hand experience that they constantly hype the "research" that their listening audience are "upper income" types.

Hey, I'm game!

Let's start with the "passion" of TOM for $200:

1. Name the best piece of legislation authored by Sen. Barack Hussein Obama.

2. Name the most successful foreign policy stance(s) of Sen. Joe Biden.

See, it's easy.

LAMBERT: I think you're always happiest when you're playing with yourself.

I am sure McCain will be generous in victory and let Michelle and Barry have a complimentary tour of the White House....under guard of course.

I think the culture of manipulation and deception in America extends beyond our political institutions. It would be beneficial to see some honesty, truth, and intellectual scrutiny of business, for example, and that public accountability be restored. Even business journalism and reporting, up until this latest financial collapse, was rarely critical and often cheerleading from the sidelines or reprints of corporate press releases.

There are the extremely obvious examples of Enron, WorldCom, and Arthur Anderson (just to name a few), where corporate dishonesty and even deception that fooled themselves had disastrous consequences for their employees, stockholders, and eventually the upper level management that resulted in destroyed families, retirements, and lives. Back dating of stock options and excessive unearned executive bonuses were widely given.

But on a more mundane level when I worked for a software development company during the .com boom, there was huge dishonesty and "marketing manipulations" going on that offend all common sense notions of fairness. Once a fairness standard went out the window, anything could be justified in the name of competition. Inventions were stolen. Investors were deceived about return on investment, tax collectors were held at bay through misreporting, etc.

To give a specific example, large companies would ask for source code by new young programmers trying to find investment capital for their new products and then either directly steal the code or release a vaporware statement that prohibited the young entrepreneur from getting their financial backing because "Microsoft is building it into the operation system..." or some such anti-competitive crap.

There is an intellectual dishonesty and greed that pervades the culture and it became grotesquely manifest within the operations of the Bush campaigns and eventually their spin-doctoring of policy and lies about the reason for going to war in Iraq. It wasn't faulty intelligence, that was simply the face or mask put on to deceive the public of their true motives and lack of competence in dealing with responsibility.

This marketing mentality devoid of a kernel of truth and essences of reality just became a standard mode of operation in many aspects of our culture.

I too ask that we demand intelligence and speak up for a better America. The shock jocks and gutter snipes of talk radio are as bad as PRAVDA propagandists under Communist regimes and their effect on the health of this nation will be exactly the same as they were on the old Soviet Union.

LAMBERT: Like most effective judicial work, when adequate oversight delivers the info for indictments and the cases stick, word gets out that you really, truly are putting your ass on the line to cook the books. More importantly, you're less likely to believe "the other guy is doing it, so I have to to stay in the game".

I'll let Mike the Bolshevik take this one:

Barack Hussein Obama actively sought and received the stamp of approval of a Marxist third party that operated briefly in Chicago between 1992 and 1998.

The New Party was a Marxist political coalition whose objective was to endorse and elect leftist public officials -- most often Democrats. The New Party's short-term objective was to move the Democratic Party leftward, thereby setting the stage for the eventual rise of new Marxist third party.

Most New Party members hailed from the Democratic Socialists of America and the militant organization ACORN. The party's Chicago chapter also included a large contingent from the Committees of Correspondence, a Marxist coalition of former Maoists, Trotskyists, and Communist Party USA members.

Have at it, Mike!

We're all for "transparency" here at Lefty Lambert's House of Chucklin'!

I see no reason to believe that those who tune into "talk" stations such as KTLK have the brains (and the incomes that follow) to select it over the banality of other commercial radio.

Afterall, as the only bonafide national alternative to the pablium force fed us by the liberal "in the bag for Obama" media, it's one place to find the facts.

How else would we know about that Marxist "third party" in Chicago that The One was affiliated with?

BL = 'Admirable passion...'

Actually, I never thought of these comments as displaying passion, but I guess it is all relative, compared to the usual citizen's flatline response to political issues, I guess my comments do seem almost fiery.

But, I'm not really, just a bit more aware and involved is all. And I especially never used to be, I used to be one of those 'I hate politics' type of guys who thought the politicians were 'hired' to represent me, were there to do all that stuff for me.

I guess that is all I am sharing here to your readers, is my awakening to realize that I do need to play my part in the solution, that democracy is alot more than just voting same as being a christian is alot more than going to church.

And, hey people, to add a comment here to Brian's blog, even if only to affirm his thoughts, helps to shape the overall discussion, helps Brian and others to know they are not alone, rambling away to empty stands.

Next step is to add our voices to the overall discussion with our actual representatives, right?

Consider it the Twelve Step Program for the Apathetic Apolitical--
Hi...I'm The Other Mike, and I haven't been apolitical-apathetic now for about 6 years. It seems to be helping and I feel much better about my contribution to life.

LAMBERT: Bring the fire, brother.

Consumer Reports for pundits, what a great idea; still, an organization that evaluates diapers might claim exemption on the grounds that they're already doing their part. Failing that, how about something like a fielding average: how many did he handle right out of how many chances.

The other question is how does one become a pundit? I had an epiphany a while back. I was watching MSNBC as Chris Matthews, Pat Buchanan and Mike Barnicle were earnestly discussing whether Obama knew how to work a "Philly lunchroom." Why does Matthews get $5 million a year to pretend to be an expert on ordinary, real, i.e. white, people? Pat Buchanan holds the Harold Stassen Chair of Failed Presidential Bids. Mike Barnicle last received serious notice when the Globe fired him for plagiarism. Why does NBC allow these trivial clowns to occupy what is apparently valuable real estate?

Incidentally, a while back somebody did a comparative study of the careers of those who got Iraq right compared with those who blew the call. It turns out that being right on Iraq was a real career killer while those who got it wrong moved up the career ladder.

LAMBERT: A batting average for pundits on say the Big Ten issues -- Iraq, economy, etc. is a keeper, John. what is laughable, especially with people like Barnicle, is that he is clearly where he is because he SOUNDS authoritative, confident, assured. Krugman -- who is getting more and more air time -- looks like he's waiting for someone to set off a cherry bomb. Krugman -- bad TV. Barnicle -- good TV.

BJ = "Have at it, Mike!"

No, you have at it BJ. Over this past month I have answered all your meaningful queries and you have not addressed a single one of mine.

So--before I completely ignore you, here is your last chance--

Give me one reason to vote for McCain or Coleman, and give me some explanation for whether this is the McCain / Coleman from pre-2006 or the one that is pandering while backpedaling post-2006.

In other words--why should I follow either one of these career politicians who only seem to say what they triangulate 50+% of the voting public wants to hear them say?

Which McCain or Coleman is the real McCain or Coleman you think you are voting for?

Anything else you have to say is just wasting my time and being 1am, do you really think I need to waste any more time with you? What are you offering me where I am should stay tuned to you even one more minute?

That's right BJ...I'm calling you...all in or fold your hand...you got any face cards worth showing, or just all these 4's, 6's and 7's you got showing so far?

LAMBERT: Just a word here, Other Mike. To my recollection, bertram has NEVER responded with to direct questions. That would require independent thinking. He can't "dial a friend".

Bertram jr. is a parrot for all the dirty trash talk being flushed through the sewers of the shock jocks and that pollute the commercial airwaves. He's never had an honest moment with himself (I'm not sure we want to go there) nor has he seriously thought about a word he mutters under his child-like Bondish guise of a political provocateur.

It is clear we've been living in a nation where these petty-minded men are deluded into thinking they are intelligent and they have the ability to run the country. Now look at the incredible mess they've got us in!

The problem is that because they live in a reality distortion bubble and the specious echo chamber of shock and awe, they don't hear what others are saying to them; they don't see the buildings crumbling down around them; or the havoc they have caused to our economy and America's standing in the world. When truth is exposed to them or people just don't buy their brutish opinions, they simply dismiss it as the "Liberal Media" establishment out to get them.

The Bertram jr.'s of this world just keep repeating their delusional dogma over and over and over again like a kid with their fingers jammed into ears shouting "I can't hear you, I can't hear you...! I am right, I am right and you are a terrorist! You are a terrorist!"

LAMBERT: They have been the grease to the Rove machine's wheels.

I've asked the questions, and so far, none of you fainting daisies can seem to muster a pair to answer them.

ACORN.
Reczko.
Ayers.
Taking your income and giving it to someone else.
Socialist, Marxist radical with Muslim heritage and a mystery family background.

Failure to produce any legislation.

Failure to be on the correct side of foreign policy decision making.

So rich, so very very rich....

The race tic alone will eat up those two points in the polls. We all know about lying to pollsters.

And then some.

Get ready for McPalin 08....

BL - border-line violence in recent McCain and Palin rallies

BS. http://www.timesleader.com/news/breakingnews/Secret_Service_says_Kill_him_allegation_unfounded_.html

...but you'd prefer to believe, because it fits so comfortably in your worldview. Its a plant. I defy you to give it impartial substantiation.

At least this is documented: http://www.startribune.com/politics/state/31111134.html?elr=KArksUUUU

Yassar Arafat got a Nobel. Walter Duranty got a Pulitzer. Where are you on Duranty? One of the great ink stained wretches to ever afflict the the comfortable?

Krugmans OK. He's a globalist though, so the Dems will throw him overboard once theres no Bush around to kick around.

Nice gambit, T O Mike, but no dice.

You know very well what the fundamental issues are regarding Obamas "qualifications", affiliations and positions.

You, like his other oddly rabid followers, simply choose not to examine or explain them, instead turning your snarling invective on those for whom such obvious matters are, well, ALL that matters.

Palin was the straw that broke your backs.

How could a woman - A WOMAN! - be so sincere, so beloved, so experienced and so QUALIFIED, when your guy isn't even in the same county resume -wise.

It must be very, VERY painful and confusing for you. It will be downright unbearable when Nov 4th is over.

LAMBERT: Sometimes, (actually many times with you), all I can say is, "Wow!"

You're bluffing, right BJ? Tossing Palin in? She is still not a face card...and you still haven't met the pot.

You folding?

It's a sad commentary that the voice of authority sounds and looks like the drunk on the corner bar stool.

I remember wondering why Mallard Filmore, i.e. Mike Tinsley, sounded like a local barfly slurring Limbaugh talking points very loudly. Then I saw that he was picked up for two alcohol related offenses in a month. He apparently he sounds like a stupid drunk wingnut because he is a stupid drunk wingnut, though only the drunk was in doubt.

For the first time in memory, a local sports yakker is busted for felony possession.

Any comment?

Or do we sweep that under the "war on drugs is a waste of time" heading?

LAMBERT: Obviously Jeff Dubay (KFAN host) has some serious demons.

Face it TOM, Palin simply has more managerial, governing, financial management / oversight, legislative and leadership experience than your boy Barry.

She better lookin', too.

I bet it just eats you up like it does, Leinie...

Well BJ, you finally ventured an answer glancing off a face card (looked like a Jack, but you still have your hand on it so it is hard to see), anyway I'll respond.

Being governor of AK couldn't be easier (no budget shortfalls, no major infrastructure...I imagine Jesse is jealous). It is a state with so much oil money and government earmarks that each year they piss away gobs of money in unneeded Governor per diems and questionable reimbursements and can still give $1000 annual rebates to their citizens.

Her 20 months of executive experience does not seem adequate. Now if she could back up that 20 months with the ability to speak intelligently on the issues facing the economy or foreign policy...but she can't. So, her 20 months experience is not enough upon which to vote for her and her runningmate--good old McCain.

I expect more from a candidate. For one, I'm looking for a person who can form full sentances when asked questions in an interview. Palin is not ready to be V.P. and I'll spare you the rest of my sermon and point you to any of a dozen major conservative GOP writers who have shredded her and McCain's poor judgement in selecting her.

Also, I'll spare you the rest of my reasons here for why you need to think more about Obama and instead refer you to any of the dozen weekend endorsements from virtually every major paper in the country and of course Colin Powell's solidly reasoned endorsement.

Lastly I'll add--I respect the conservatives in theory, but not the GOP party in practice. Governing means more than lowering taxes for the rich and mixing church with state. With the retirement of Ramstad, I no longer have a single MN GOP representative that I respect. Coleman, Kline, Bachmann, et al...I cannot think of a single achievement of any of these party hacks. They haven't done anything or even said much that has gotten my attention as being a step in the right direction. Honestly, I have no clue wny they get re-elected.

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LAMBERT: Thanks ... I think.