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A lesson in banking history

It is true as John H. Burns (Public Forum, Oct. 7) states, Judgment Day is at hand. He needs to go back and read a little banking history. Our independent banks were quite adequate until 1938, when government stuck itself into the banking industry by establishing Fannie Mae. They operated by undercutting banking interest rates and loosening regulations, using the reasoning to reach so-called underprivileged borrowers.

After a period of years, apparently Fannie Mae wasn't big enough to cover the territory so Freddie Mac was established. Then we hear about the liberal legislators who worked to loosen regulations much more to suck in borrowers who did not have resources, who didn't even have a chance to make the payments. Then there was the greedy kind who exploited the condition for their own personal gain.

There were warnings from Greenspan and some legislators that we were headed for financial trouble but liberals wouldn't listen. U.S. Rep. Barney Frank, Sen. Chuck Schumer and company said there was nothing wrong with the economy on TV. John McCain introduced legislation to correct the regulation but could not get it through the liberal Democrats.

President Bush is a human being, too, and does make some mistakes like all of us do. Even as President Roosevelt did in World War II, but he won. Perhaps John H. Burns should research Barack Obama's background as he seems to have done with Bush and the Republicans.

Albin Skogstad