Here's what really happened.
In 1933 a law was passed that prohibited banks from being both a commercial bank (gives mortgage loans to home buyers) and an investment bank (deals with investment accounts). They could only be one or the other. Under that law, a mortgage bank failure would have little effect on the investment industry. Today’s crisis could not have happened under that law. Clinton and the Democrats repealed it.

President Carter and the Democrats passed the Community Reinvestmentment Act in the 70’s. They wanted the poor and minorities to buy houses so the law forced banks to make loans to people who were poor credit risks. Those banks and politicians who objected were called racist.

Clinton and the Democrats greatly expanded the Community Reinvestmentment Act. Banks responded to the increased charges of racism and pressure to make loans to people with poor credit by creating sub-prime mortgages.

Democrats created Freddie Mac and Fannie Mae to buy up those loans, bundle them and resell them to investors worldwide. Investors bought because Fannie and Freddie guaranteed to pay off the loans if they defaulted.

Under the Clinton expansion, Fannie Mae and Freddie Mac CEO’s (appointed by Democrats) were paid according to how many new sub-prime mortgages they could accumulate and resell. So they built up billions and billions of dollars worth of risky loans. Fannie CEO Franklin Raines walked away with 90 million dollars.

Fannie Mae and Freddie Mac contributed hundreds of thousands of dollars to Democrat politicians. Senator Dodd, head of the Senate banking committee, received the most money over a 20 year period. Senator Obama received the second most money over the last two years.

Republicans in congress made several attempts, the most recent in 2003 and 2005, to pass laws that would provide some control over Fannie Mae and Freddie Mac. Democrats blocked those attempts. Youtube has videos of democrat congressman Barney Frank saying in 2005 that Fannie and Freddie are sound. Democrat congresswoman Maxine Waters can be seen saying that Franklin Raines’ leadership is “outstanding.” Democrat congressman Meeks is seen implying that anyone who criticizes Fannie and Freddie is racist.

Now the bad loans are defaulting and banks are failing all over the world.

Democrats want us to believe that Pelosi, Reid, Barney Frank, Dodd and Obama are going to rescue us from the mess that they themselves made.

Here we Americans are, working every day, putting food on the table, kids through school, playing by the rules and minding our own business. We didn’t take out loans on houses we couldn’t afford. Now we are supposed to foot the bill and endure financial problems for something that democrats did.

Kit Nelson's argument is a tissue of lies. Here's one:
"Clinton and the Democrats greatly expanded the Community Reinvestmentment Act" - the House and Senate throughout all but two years of Clinton's presidencey were both Republicna, Kit, sorry.
There is also an implicit lie is his very first paragraph ("In 1933 a law was passed") - that the Republicans passed this law that Democrats later repealed.
Umm... Wasn't 1933 FDR's first year as president.
But of course, according to rightists like Nelson, FDR was a bad president, so let's just pretend Hoover never got booted out of office.
Just one lie after another, rewriting history to suit himself and his own nasty out of date view of the world.
Obama is our next President - of the United States of America - Nelson, love it or leave it.