The Bush administration is working feverishly to bail out mortgage giants Fannie Mae and Freddie Mac, in addition to investment banks. It was funny to hear Obama’s economic spokesman say last week that “the Bush administration’s willful neglect of warning signs in housing, in financial markets and in the job market have compromised the nation’s housing-finance system. Funny because a mere month ago, Obama had chosen, of all people, former Fannie Mae CEO James Johnson to help pick his running mate. Its mission is to inject money into the housing market by buying mortgages and selling them to investors in the form of mortgage-backed securities. The Washington Post reported that then-Federal Reserve Chairman Alan Greenspan feared “a sudden meltdown” in Fannie and Freddie “could bring down the financial markets with it — an argument that Johnson and his successor Franklin D. The Congressional Hispanic Caucus listed Countrywide Financial — an aggressive pusher of subprime mortgages to minorities — as a “trusted friend” on its housing literature and Web site. read more