Carried as “breaking news,” here are comments by one of the dumbest Senators in Congress which are designed to reiterate democrat talking points and characterize Senator McCain’s reluctance to continue the debate with the bailout bill pending.

Barbara Boxer, in her own worthless words …

Barbara Boxer (D-CA): “I think it was a little political theater to change the debate. And let me tell you why John McCain wants to change the debate. Of all the people who have been in the forefront of deregulation, which is the cause of this problem, deregulation, is John McCain. It started with the Keating Five when he went in there and tried to press regulators not to go after a savings and loan with Charles Keating. We know about that. And it continued on  through his whole career in terms of leading the charge with Phil Gramm for deregulation. He doesn’t want people to know that. He doesn’t want you to talk about it. Isn’t it better to talk about whether or not their will be a debate.” <Source>

Boxer, arguably the dumbest member of the Senate, not only distorts the truth, but she is totally clueless when it comes to the real world.

First, McCain was one of the Senators who was involved in the Keating Five Scandal. The counsel to the hearing suggested that Republican Senator McCain be released as his role was minimal and their was no clear evidence that he acted improperly. The democrats did not want this to be a democrat-only scandal and refused to release him from the hearing.

“After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised "poor judgment".

“All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they were both re-elected.”

So obviously Boxer does not know what she is talking about and is trying to smear a fellow Senator with non-existent facts.

And second, it was not deregulation which was the cause of this problems. There were regulators aplenty (federal regulators such as the FDIC, OCC, FED, OTS, NCUA, SEC as well as state regulators), many of whom did not adequately perform their tasks.

The real cause of the problem leads back to the democrats who, for political purposes, demanded that the democrat creations Fannie Mae and Freddie Mac purchase mortgage loans from people who could not qualify for traditional mortgages due to problems with their past credit history or lack of steady employment. In addition, a democrat-led Congress continued to push banks into making more loans to racial and ethnic minorities – again with relaxed lending standards.  When thousands of these "relaxed" or "no qualification" loans were given to people who could not afford their homes, they either re-financed or were foreclosed. When property values dropped, they could not re-finance, so thousands faced foreclosure -- driving the real estate market into a downward spiral which precipitated the humungeous losses among financial institutions which used borrowed funds to leverage their profits on this toxic paper. Unfortunately, leveraged investments that rise metorically in good times, fall catestrophically in bad times. Thus many financial institutions that held this bad paper became technically insolvent or "unsound" and needed to be bailed out of their predicament lest the contagion spread to the entire economy.

That is not to say that certain lenders and Wall Street Wizards did not capitalize on the situation and walk-away with multi-million dollar bonuses. It says that Barbara Boxer is out of touch with the reality of the current financial crisis – and stupidly continues to spew forth democrat talking points to people who do not seem willing to challenge her on her facts and assumptions.

The real story …

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