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NY Post: The Real Scandal (Mortgage Meltdown)
The New York Post ^ | February 5, 2008 | STAN LIEBOWITZ

Posted on 09/15/2008 8:38:53 PM PDT by Orbiting_Rosie's_Head

PERHAPS the greatest scandal of the mortgage crisis is that it is a direct result of an intentional loosening of underwriting standards - done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults.

(Excerpt) Read more at nypost.com ...


TOPICS: Crime/Corruption; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: acorn; affirmativeadvantage; banks; cra; crime; discrimination; economy; fraud; housingbubble; meltdown; mortgage; robberbarons; subprime
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An older article from Feb., but appropriate in light of The Obamessiah's and other Dem's blaming of Bush for the Fiasco. Follow the money back through time to the Community Reinvestment Act and its relationship to the Gramm-Leach-Bliley Act

Better yet, Google Jimmy Carter Community Reinvestment Act, or ACORN Community Reinvestment Act.

1 posted on 09/15/2008 8:38:54 PM PDT by Orbiting_Rosie's_Head
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To: Orbiting_Rosie's_Head
Better yet, Google Jimmy Carter Community Reinvestment Act, or ACORN Community Reinvestment Act.

Or, more importantly, Bill Clinton's amendment to it in 1994.

2 posted on 09/15/2008 8:43:25 PM PDT by Cementjungle
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To: Orbiting_Rosie's_Head
FANNIE-GATE

POST HERE

3 posted on 09/15/2008 8:44:52 PM PDT by paul in cape
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To: Orbiting_Rosie's_Head

bookmark for later.


4 posted on 09/15/2008 8:48:44 PM PDT by IrishCatholic (No local communist or socialist party chapter? Join the Democrats, it's the same thing.)
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To: Orbiting_Rosie's_Head
The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!
5 posted on 09/15/2008 8:49:03 PM PDT by JasonC
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To: Orbiting_Rosie's_Head

Where is John Galt? Is Atlas shrugging?


6 posted on 09/15/2008 8:50:43 PM PDT by GOPPachyderm
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To: Orbiting_Rosie's_Head

” intentional loosening of underwriting standards - done in the name of ending discrimination,”

Yes..


7 posted on 09/15/2008 8:51:31 PM PDT by HereInTheHeartland (Help fight the left's anointed candidate, contribute and work for McCain/Palin..)
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To: Orbiting_Rosie's_Head
At the crisis' core are loans that were made with virtually nonexistent underwriting standards - no verification of income or assets; little consideration of the applicant's ability to make payments; no down payment.

And at the core of the core are the dems of Freddie and Fannie..

8 posted on 09/15/2008 8:52:13 PM PDT by GOPJ (Am I the only person tired of bailing out multimillionaires with tax dollars?)
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To: Orbiting_Rosie's_Head

Does anybody know how Biden and McCain voted on the CRA and or G-L-B?


9 posted on 09/15/2008 8:52:25 PM PDT by JrsyJack
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To: JasonC

You fix the system by taking the pipe dreamers off the case and rewriting the rules so they jive with reality.


10 posted on 09/15/2008 8:53:31 PM PDT by GOPJ (Am I the only person tired of bailing out multimillionaires with tax dollars?)
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To: Orbiting_Rosie's_Head
In the 1980s, groups such as the activists at ACORN began pushing charges of "redlining" - claims that banks discriminated against minorities in mortgage lending.

No wonder B. Hussein Obama is blaming this mess on Bush. I'm sure he wants to deflect attention away from ACORN's role.

11 posted on 09/15/2008 8:53:59 PM PDT by Shannon
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To: Orbiting_Rosie's_Head

http://banking.senate.gov/public/

http://banking.senate.gov/public/index.cfm?FuseAction=Articles.Detail&Article_id=626fa0c4-fca8-4bbc-9d8f-153744f69523&Month=2&Year=2007

Senator Dodd, number one recipient of lobby funds from FNMA since 1989 (with Obama being #2)

Feb, 2007

“For many years, the battle so many of us fought was to make credit available to neighborhoods that had been redlined, or to people, particularly minorities, who felt the sting of rejection regardless of their creditworthiness.

In response to this injustice, and after years of hard work by people like Reverend Jackson, Hilary Shelton, and many, many others, we passed the Community Reinvestment Act and the Fair Housing Act, so that credit to buy a home or build a business would be available to all Americans.

As a result, we have seen homeownership grow. Every one of us has spoken about homeownership – how it provides stability and a chance to build wealth for the vast majority of Americans. It is the most valuable asset that most of us own. Our homes provide us with a financial cushion on which we can draw to send our children to college, pay for unexpected health care expenses, or finance a secure retirement.

To the extent that the creation of the subprime market has added to this flow of credit in a positive and constructive way, in a way that helps build wealth – I welcome the development.”

Chris Dodd, Chairman Senate Banking Committee and grateful receipient of a preferential Countrywide mortgage


12 posted on 09/15/2008 8:54:39 PM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: GOPJ
There isn't anyone in the room who isn't a pipe dreamer! You are all stark raving mad with partisan ideological spin and useless floods of unadulterate crap! Got it?

If you want to play partisan blame, you can play it from the bottom of an African cesspool with AK-47s and casual murder in broad daylight. Got it? Or you can call a bleeding time out and save the burning building you are bawling and squabbling over.

13 posted on 09/15/2008 9:01:47 PM PDT by JasonC
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To: Cementjungle
We need many people to research this. BO is blamming Gramm for the debacle, but the orginal GLBA passed the Senate on a near party-line vote (Hollings voted yea) that scaled back the CRA. However, BJ threatened a veto, the bill was rewritten (to strengthen CRA), and it sailed through 90-8. I want to know who was the behind the rewrite, what, if any amendments there were, and what the real story is.

Icky People

Senate Votes to Drop Barriers Between Nation's Financial Industries

I couldn't find a follow-up on the NYT piece about the second 90-8 vote.

14 posted on 09/15/2008 9:04:34 PM PDT by Orbiting_Rosie's_Head (argh)
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To: JasonC

Dude, take your meds.....


15 posted on 09/15/2008 9:08:32 PM PDT by Kozak (Anti Shahada: There is no god named Allah, and Muhammed is a false prophet)
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To: JasonC

I knew God had to have a boss , but I never dreamed that it was JasonC.


16 posted on 09/15/2008 9:09:05 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: JasonC
The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!

The first step in fixing a problem is to properly identify it, lest you heap more folly.

17 posted on 09/15/2008 9:09:26 PM PDT by Orbiting_Rosie's_Head (argh)
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To: JasonC
The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!

It's usually a good idea to figure out what caused the "bleeding problem" before deciding how to fix the "bleeding problem". Flailing your arms about no one doing anything to "fix" the problem is of little value. IMHO, of course.

18 posted on 09/15/2008 9:10:35 PM PDT by Prokopton
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To: JasonC

Thank you Jimmy C!


19 posted on 09/15/2008 9:11:10 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: JasonC

What on earth are you talking about.


20 posted on 09/15/2008 9:11:19 PM PDT by GOPJ (Am I the only person tired of bailing out multimillionaires with tax dollars?)
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To: GOPJ
I am talking about the luddites walking around here and the halls of the administration deciding that oh, it'd be just great to tell half of wall street to walk the plank. Heck, bankers are unpopular, why not have the air force nuke New York City tommorrow at noon, just to teach 'em a lesson?
21 posted on 09/15/2008 9:14:13 PM PDT by JasonC
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To: editor-surveyor
Swing and a miss, with the usual ad hominem smear. Veteran, patriot, life long republican.
22 posted on 09/15/2008 9:15:02 PM PDT by JasonC
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To: Orbiting_Rosie's_Head

mark for tomorrow


23 posted on 09/15/2008 9:15:08 PM PDT by Trailerpark Badass (Happiness is a choice!)
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To: JasonC

I CAN HAZ EXAJJERATION?


24 posted on 09/15/2008 9:17:03 PM PDT by ikka
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To: silverleaf

Senator Dodd, number one recipient of lobby funds from FNMA since 1989 (with Obama being #2)

Feb, 2007 “For many years, the battle so many of us fought was to make credit available to neighborhoods that had been redlined, or to people, particularly minorities, who felt the sting of rejection regardless of their creditworthiness. In response to this injustice, and after years of hard work by people like Reverend Jackson, Hilary Shelton, and many, many others, we passed the Community Reinvestment Act and the Fair Housing Act, so that credit to buy a home or build a business would be available to all Americans. As a result, we have seen homeownership grow. Every one of us has spoken about homeownership – how it provides stability and a chance to build wealth for the vast majority of Americans. It is the most valuable asset that most of us own. Our homes provide us with a financial cushion on which we can draw to send our children to college, pay for unexpected health care expenses, or finance a secure retirement.

Dodd should be arrested and hung at dawn ( metaphorically speaking)

25 posted on 09/15/2008 9:18:34 PM PDT by GOPJ (Am I the only person tired of bailing out multimillionaires with tax dollars?)
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To: Prokopton
We know what the bleeding problem is. There is a $500 billion unallocated financial loss on US residential real estate careening around the financial system, and everyone is playing hot potato trying to drop it steaming in someone else's lap. Which might be amusing, except that it has already done 5 times that much damage, and it is looking to go nuclear and raise that by another factor of 10 by the end of the month.

Allocate the loss. Ignore the question of blame. Ignore who gets hurt. Just take the hit and put it behind all concerned. Burn down whatever is insolvant and remove anyone running any institution that is, fine no problem, nobody cares. But focus entirely on limited the size of the overall hit, by getting it over with, and stop playing spin games to try to get someone else to take it for you. No one walks away from the hit this size untouched. It is metaphyically impossible, and blame has nothing to do with that fact. It is a mere law of economics. You might as sensibly try arguing with gravity after walking off a cliff, claiming you don't deserve to fall.

26 posted on 09/15/2008 9:19:39 PM PDT by JasonC
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To: JasonC

You’re doing all the smearing here.

Your refusal to recognize that the problem is partisan/idological belies your ‘republican’ claim.


27 posted on 09/15/2008 9:20:11 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: Kozak
Snot nosed kid, grow up and go away until the country is safe again. Grown ups are talking.
28 posted on 09/15/2008 9:20:42 PM PDT by JasonC
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To: editor-surveyor
Ideology is indeed the root of the problem at this instant, because no one is acting as a technocrat economist looking at the common good, everyone is instead acting like a partisan hack only interested in making hay from the ruin of their country. McCain called for calm and said the fundamentals are sound - it was the only *adult* word on any of it, all day.
29 posted on 09/15/2008 9:22:30 PM PDT by JasonC
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To: JasonC; Prokopton
"Allocate the loss. Ignore the question of blame. Ignore who gets hurt. Just take the hit and put it behind all concerned."

Can't we all get along...

Problems have causes, and until the cause is properly addressed, there will be no solution, just a deferral to the deja-vu club.

30 posted on 09/15/2008 9:24:21 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: editor-surveyor
Oh and look around - people are posting that bankers deserve to be shot and politicians hung, and cheering as the wealth of the nation evaporates in useless bickering. They are bloody well smearing the living crap out of everything they can reach!
31 posted on 09/15/2008 9:24:26 PM PDT by JasonC
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To: Orbiting_Rosie's_Head

Bump


32 posted on 09/15/2008 9:26:47 PM PDT by eddie willers
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To: JasonC

There’s some some serious problems going on - might have another great depression - or worse. Hopefully that won’t happen. People are tying to figure out what happened and how can it be undone. The court of public opinion has a role to play and we’re playing it. I just don’t understand where your anger is coming from...


33 posted on 09/15/2008 9:27:05 PM PDT by GOPJ (Am I the only person tired of bailing out multimillionaires with tax dollars?)
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To: Orbiting_Rosie's_Head

http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0


34 posted on 09/15/2008 9:27:12 PM PDT by PGR88
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To: Orbiting_Rosie's_Head

And this link, posted before, gives good evidence that CRA and the housing frenzy earlier in the decade were greatly abused by illegals as well

http://www.takimag.com/site/article/the_diversity_recession_or_how_affirmative_action_helped_cause_the_housing


35 posted on 09/15/2008 9:29:16 PM PDT by PGR88
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To: JasonC
"

That's what people do when they feel totally helpless, and recognize that all real solutions are beyond their grasp. No gold, no survival; that is the cold reality. When all the fiat currencies become cigar lighters, the righteous anger floats to the top. Get ready!

36 posted on 09/15/2008 9:34:46 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: Cementjungle

“..Jimmy Carter Community Reinvestment Act, or ACORN Community Reinvestment Act..”

Can you spell social engineering, boys and girls?

I knew you could.


37 posted on 09/15/2008 9:37:36 PM PDT by Rembrandt (We would have won Viet Nam w/o Dim interference.)
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To: JasonC
"look around - people are posting that bankers deserve to be shot and politicians hung..."

That's what people do when they feel totally helpless, and recognize that all real solutions are beyond their grasp. No gold, no survival; that is the cold reality. When all the fiat currencies become cigar lighters, the righteous anger floats to the top. Get ready!

38 posted on 09/15/2008 9:39:25 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: Orbiting_Rosie's_Head
Are you saying that Obama and his former employer ACORN are responsible for the meltdown?
39 posted on 09/15/2008 9:41:40 PM PDT by Uncle Miltie (Palin for President! (Who was that old fogey she was with?))
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To: GOPJ
My anger is coming from the men on other threads right here on this site openly advocating the physical murder of bankers, and others merely gleeful that the wealth of others is being destroyed wholesale. Look around. My anger is directed at the blind partisan blame games will our country is burning. Does anyone here gives a rats rumpus about the bleeding country? Or is all if it just another excuse to made snide remarks about hated opponents to amass more personal power?

Conservatism is supposed to be about character. It is supposed to be about competence and merit and ability to execute. It is supposed to be about the good of the people and helping lift all together, not the class warfare crap we despise the left for engaging in. It is supposed to be about knowing economics, not just having a vested interest and a bet. It is supposed to be about patriotism and putting the country first. It is supposed to be about being superior to press pressure and mad crowd passions. It is supposed to be responsible, grown up, and sane.

Look around you. Any of that strongly in evidence over this financial crisis?

When a weak hurricane headed for the Louisiana coast on the eve of the Republican convention, men dropped everything to show their concern for an issue of common welfare. It was obvious they feared being blindsided by apparent indifference to another Katrina scale disaster, but they did what they should do in such circumstances. You see any of that over the Wall Street mess?

I've seen maybe 3 government officials, from top to bottom, show real spin-free technocrat sense in this entire crisis. Everyone else is just playing it for angles and could care less what they burn to the ground in the process. These people aren't fit to run a hotdog stand, and they want to run my country. You bet I'm mad!

40 posted on 09/15/2008 9:41:42 PM PDT by JasonC
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To: editor-surveyor
Horsefeathers, yet another snide doom mongering twit with an ideological spin and a product to hawk. It is beyond obscene.
41 posted on 09/15/2008 9:42:43 PM PDT by JasonC
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To: JasonC

“Heck, bankers are unpopular, why not have the air force nuke New York City tommorrow at noon, just to teach ‘em a lesson?”

If you modified that to remove NYC and make the target, specifically, the UN, I think we could have a vote and begin adjusting for a clean hit.


42 posted on 09/15/2008 9:43:12 PM PDT by Rembrandt (We would have won Viet Nam w/o Dim interference.)
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To: JasonC

Your ignorance is all you have; that is very visible in your posts. Growling at those that understand is not going to improve your situation; it isn’t going away.


43 posted on 09/15/2008 9:46:02 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: GOPJ

Here’s another provocative article- Village Voice of all sources- clams the democrats started the mess and tags Andrew Cuomo’s time in HUD as a major factor!
Note the tie in of lobby groups mentions ACORN

http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/
Andrew Cuomo started mess? articles tying in HUD and lobby groups (ACORN!)


44 posted on 09/15/2008 9:46:18 PM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: Orbiting_Rosie's_Head

I don’t get it. Just make it easier for people to pay back their loans rather than default?

If a renter can’t afford 2,000 a month for 15 years let him pay 1,800 for 30 years. Stretch it to 40 years.

As long as you have cash flow- you are buying time.

I’m no banker, but clearly there are some stupid mother F’ers making decisions.

Don’t give money to anyone. Re adjust the loans.

Everyone wins.


45 posted on 09/15/2008 9:46:37 PM PDT by Porterville (Mac Truck)
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To: Rembrandt
See, you are now a barking moonbat. You make the left look sane, which I would not have thought possible. I recall getting wild incredulity for suggesting a few weeks ago that in the end, Israel might have to use nuclear weapons against Iran. You lightly suggest instead nuking New York. Next you will explain that you've joined Bin Laden's headhackers crew because at least they don't like postmodernism.
46 posted on 09/15/2008 9:48:03 PM PDT by JasonC
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To: editor-surveyor
I understand more about economics than everyone you've ever met, ever will.
47 posted on 09/15/2008 9:49:03 PM PDT by JasonC
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To: JasonC

I knew you had a sense of humor hiding somewhere.


48 posted on 09/15/2008 9:55:25 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: JasonC

Jason, if you or others do NOT do some work at countering the democrat poo-flinging at Bush with some historical facts - the poo flingers who put the foxes like Jim Johnson, Franklin Raines, Tim Howard, Jamie Gorelick in charge of the hen house will be running the White House, the Congress and the Senate, plus every other agency of government.

Fact is, this is the result of cronyism and individual greed on possibly the largest scale in our lifetime, and a whole lot of it attributable to the likes of people who pursed Scooter Libby and now Sarah Palin like a pack of braying hyenas while hiding behind piles of megamillions looted and raped from our treasury while the GOP was either bought off or otherwise acquiesced in accepting this cronyism.


49 posted on 09/15/2008 9:56:19 PM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: Porterville
"If a renter can’t afford 2,000 a month for 15 years let him pay 1,800 for 30 years. Stretch it to 40 years."

There is a point where buying becomes so demonstrably more costly than renting that you have to give up. That point is close to 30 years.

50 posted on 09/15/2008 9:59:04 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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