Barney Frank On Whether There Is A Chance The US Will Be Put Into Default: "Yes"

Tyler Durden's picture

Barney Frank, fresh from being caught on live TV picking his nose during Bernanke's Humphrey Hawkins presentation, had a decidedly more sour outlook on the prospects for the debt ceiling. Spoiler alert: in tried and true fashion, the drama king blamed it all on the stupidity and inexperience of republicans. Asked when there is a chance the US will be put into default: "Yes. I take the freshmen republicans and people like Michelle Bachmann
at their word
. I don't think they're kidding. I think they fundamentally
misread this situation as Bernanke, a Bush appointee after all, made
clear today. I think there are people that frankly have an unreal view
of the world. They believe that this is somehow a fake and that you can
push a button and make a lot of these debts go away.
I believe there are
a substantial number of Republicans who are opposed to a huge debt and a
further group of Republicans who understand why it's important to raise
the debt limit, but are afraid of losing a primary to someone." Recapping Frank's view: why deal with a problem under my tenure, when very soon there will be a congressman who will replace me and he, or more likely she, can deal with the sordid mess I created. And this is not even counting the trillions in GSE off-the-books debt of which Frank was one of the key people responsible for letting it be the catalyst that blew up the credit bubble when Fannie and Freddie were nationalized just under 3 years ago.

From Bloomberg TV:

Other interview highlights:

Frank on the debt negotiations and whether there's a chance the United States will be put into default:

"I think there is a very real chance that the unrealistic view of many of these new right- wing Republicans and those who are intimidated by them could vote no."

On Bernanke's economic assessment today:

"I was encouraged by much of what [Bernanke] said. First of all, he made it clear that the economy is doing well and then he talked about that we're retarding the growth. Every one of those things are outside of the president's control. The Greek debt crisis, the Japanese earthquake/tsunami, the Libyan revolution -- these are things that are not under our control that cause problems for us."

"I was very pleased that he very thoughtfully drew a distinction between the need to have over the longer term serious debt reduction, but the danger of cutting too much into short term. He talked about the headwinds that are retarding the economy and he said excessive fiscal tightening. We have lost -- since the middle of 2009 -- half a million jobs in the public sector. Those are not faceless statistics. Those are public works people who clean the streets. Those are police officers, firefighters, etc. I thought it was important that he said, one, we have to reduce the deficit over the long term. and number two, it would be a calamity if we did not raise the debt limit. And three, separate out the importance of a longer-term binding debt reduction framework, but not exacerbating the obstacles to recovery by cutting too deeply in the next few months."

On whether he would like to see some version of a QE3:

"That's not my first choice. My first choice would be for Congress to act in a reasonable way. For example, let's provide some money in the short term to cities and towns so they can undo some of those cuts. Put people back who would provide important public services, etc…The critics of QE1 and QE2 who said it was going lead to inflation, it would cost the federal government money, have absolutely been proven wrong. If we needed a third round, I would be for it. I would hope, however, I think we have done enough with monetary policy, fiscal policy should come first."

On Dodd-Frank and critics like Jamie Dimon and Peter Wallison:

"Mr. Wallison is Johnny one-note and a one man band. He was one of four Republicans on the Financial Inquiry Crisis Commission and he would up attacking the other three. He is all by himself in thinking it was not Lehman Brothers or AIG or derivatives. As to Fannie Mae and Freddie Mac, the Democratic Congress working with Hank Paulson put them into conservatorship in 2008 and according to the Bush appointees, we are not losing money on them.

"Jamie Dimon, I wish he had measured the damage that was being done by the policies beforehand rather than our efforts to correct it."

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carbonmutant's picture

Obama must want something...

and the democrats are using fear to sell it...

Whizbang's picture

Not just obama. Deficit spending is now baked into the balance sheets of the world's largest corporations. Without the subsidies, tax breaks, etc. they are all in a lot of trouble. Fortunately for them, they own the u.s. and it's current regime. Have no fear, the debt cieling will be raised.

camaro68ss's picture

Barny Frank is Fucking retarted, everytime he talks he slobers all over himself

King_of_simpletons's picture

First of all, he made it clear that the economy is doing well


A lie right there. Whose economy ?

Shocker's picture

Whats really funny, is this is the first time its actually getting national news that the US may Default. Before this all we have heard was Recovery, things are good, Jobs numbers are good....

Most people know, that the economy is still in rough shape. Its sad, but i guess its reality


Burgess Shale's picture

Barney Frank is the preeminent poster boy for term limits.

gmrpeabody's picture

THE biggest puke in Washington!

Thomas's picture

During the Salem witch trials, one man who was convicted and having stones placed on his chest to crush him to death--the preferred method contrary to popular notions of burning--was reputed to have said in defiance, "More stones!" I believe he meant "more government".

Sudden Debt's picture

THE Chinese economy. Is there any other that really matters?


Pegasus Muse's picture

" tried and true fashion, the drama queen blamed it all on the stupidity and inexperience of republicans."

Danks18's picture

Oh yeah, crocodile tears orange man Boehner and crazy eyes Bachmann are paragons of statesmanship in comparison.  See, it's easy to diss physical characteristics, dummy.  Your car looks like a mid-life crisis on wheels.  Get a life.


CompassionateFascist's picture

Barney needs a new bedmate....his sig other spends too much time trawling the playgrounds. Danks18 1st in line.

Danks18's picture

Wow.  Two references to homosexuality and a pedophile "joke" all rolled into one.  I don't know whether I upset you or turned you on.  Either way, CompassionateFascist's got c*ck on the brain.  Back to your fantasies of men in line couso.  

buck4free's picture

...mid-life crisis on wheels...


Fuck. That was a goodie.

Danks18's picture

Also.  What's up with 9 junks in three hours!?!  Camoron68ss got 1 in 3+  hours.  We must not be allowed to say anything bad about Republicans on here.

Bachmann is a whitey white.  Why doesn't she come out to Rockaway for a rally?  Check out her urban support.  Hey Cantor and P Ryan.  You are invited too.    

derryb's picture

something tells me that is not "slobber"

Chuck Walla's picture

That wasn't a sour look, that was Bawney working the semen out of the gaps in his gums.

Cistercian's picture

 I am nauseous from antibiotics....and that nearly made me puke.

  But it barely exceeds the outrage when fwanki says the statistics have faces....and then panders to his base.

   Perhaps a better title for the article would be "Bawnee....still pure EVIL....and loving it!"

cougar_w's picture

Must want something? You mean, like re-election?

It's going to be nothing but panem et circenses until the end of 2012.

And at the current rate the country might not even hold together until the end of 2011.

sun tzu's picture

Barney Frank and Timmy Geithner are fucking morons. There is more than enough money coming into the treasury each month to pay the interest on debt and SS checks. After that, they might have to start cutting other programs. 



Mae Kadoodie's picture

He did pick his nose, didn't he?  A quick hook.  Cheeky monkey.

knukles's picture

Oh for Kreeeeist's sakes, let's be fair.
A lot of us pick our noses.
And get caught.

The bigger, more salient, telling, Freudian question is....

Did he eat it or save it for later?

That, my little crocodilian friends, is of paramount importance. 
Is he a real man's man? 

Problem Is's picture

I think he's drunk... 8 martini lunch...

Hey... Doesn't Barney look just like Uncle Billy from its a Wonderful Life??

You know... the one that lost $10k in cash, bankrupted the Baily Savings & Loan that sent George to jail when he wouldn't fess up??????

DonnieD's picture

So I've had it backwards all along, politicians actually do what's fiscally prudent to get reelected. And I thought they spent money they didn't have to get reelected. Silly me. Thanks for straightening that out, Barney.

whstlblwr's picture

Yes, and to people who think election not important,

Frank words: I believe there are a substantial number of Republicans who are opposed to a huge debt and a further group of Republicans who understand why it's important to raise the debt limit, but are afraid of losing a primary to someone."

"Afraid of losing primary."

We have power, if we use it. If you not like debt ceiling increase, you can let your congresspeople know. Call or leave comment on comment line.

fuu's picture

"Afraid of losing primary."  has very little to do with the voters. It has to do with who will shovel money into the campaign. if the big boys dont back you then you don't get elected.

knukles's picture

Fuck me.
Spot on!

Winning or loosing a primary no longer has squat to do with the voters!

whstlblwr's picture

Another lazy on ZH who acts like he know something too lazy to look for self. Why don't you look and see there are many elected that have less money. If you not so lazy to lift your finger and press on keys for search. Many, many candidates win without top money. You not need money to win, just supporters. It's why Ron Paul can win. If spend 10 minutes, can give you list of candidate who beat with no money.

Money said poor predictor of candidate’s nomination

By Donald Lambro
The Washington Times
July 20, 2007

Recent political history shows that Democratic presidential contenders who lead the pack at the start of the fundraising race often lose the early caucuses and primaries.

This is the cautionary tale being discussed by campaign strategists for some of the top- and second-tier Democratic candidates as well as by veteran election analysts and fundraisers who think the press has exaggerated the importance of who is ahead in the money race - long considered the mother's milk of politics.

Ask Joe Trippi, the campaign manager for former Vermont Gov. Howard Dean in the last presidential election. At this point in the 2004 election cycle, Mr. Dean was the fundraising leader and appeared to be the prohibitive favorite for the nomination.

Although Mr. Dean led his rivals in the money-raising contest right up until the end of 2003 and just days before the Iowa caucuses, he was defeated by Sen. John Kerry of Massachusetts, who went on to win the nomination.

"Historically, the amount of money raised in the preprimary cycle has not been a good indicator of who wins the nomination," said Mr. Trippi, an adviser to former Sen. John Edwards of North Carolina.

fuu's picture

A $9.0 billion per cycle industry is not about the voters, it is about the customers signing the checks.

Puff pieces without links, sources, charts, or graphs quoting long time Democratic party insiders who charge $750,000/year does not change the reality of the matter. Look who Joe Tippi helped get elected. The current Greek leader, the current leader of Italy, Tony Blair, and Jerry Brown. None of these people were behind in money, Joe isn't cheap.

You could have just linked the article. Hell you can see that the article is full of shit if you read past the first 5 paragraphs you linked.

"In 1984, former Vice President Walter Mondale had all the money in the world and a guy by the name of Gary Hart, who had message and not much money at all, beat him in the primaries and actually won more convention delegates. It took the party's superdelegates to put Mondale over the top," he said.

Do you see it?

"As of this month, Sen. Barack Obama of Illinois led Sen. Hillary Rodham Clinton of New York in the money race, $58.5 million to $52.5 million. Mr. Edwards is in third place with $23 million raised."

Do you see it here?

Have you ever been involved with primaries? Have you ever sat in the school classroom where your precinct elects a president, vice president, secretary, and delegates to the county level? Have you then gone on to sit in the county convention while the county elects it's delegates and alternates? Have you then sat at the state convention and watched the election of your national delegates get hijacked by national party bosses?

If not then I gotta wonder who is "Another lazy on ZH who acts like he know something too lazy to look for self."

Anyway here are the links I used to compile this post.

caerus's picture

The critics of QE1 and QE2 who said it was going lead to inflation, it would cost the federal government money, have absolutely been proven wrong.


dbach's picture

Just like everyone else there setting policy, he probably doesn't buy his own groceries or fill his gas tank. He also doesn't look at gold as an alternative to money, just like Bernanke, no wonder they get along great!

caerus's picture

agreed...he sure as hell eats his own groceries though

FreedomGuy's picture

Barney Frank is a damned economic idiot. He's also insufferably arrogant. Arrogance and stupidity with government power is the most lethal combination in the universe. He is ground zero for the failure of Fannie and Freddie. His cronies and boyfriends looted and ruined the damned things...and then he got reelected by an ignorant electorate in one of the most leftist states in the union.

He's going standard Democrat/statist/liberal playbook. Everything is the fault of Republicans and those who want more freedom. Need more regs, more gov't, more money, more power, more agencies, more oversite. When that doesn't work...repeat. 

If this was the French revolution his head would roll. We can't even get him unelected. I don't swear much but he's a fucking arrogant moron and the posterboy for what is wrong in America.

InvalidID's picture

 That's what separates those folks in DC from normal functioning human beings. The ability to stand up in front of millions of people and sell the biggest pile of bull shit, all without blinking or laughing.

 Cause if we were all honest with ourselves, you know if you had to say some shit like that on camera you couldn't get through the whole thing without cracking up.

TruthInSunshine's picture

Just one 50 second video example of what a massive liar Barney Frank is, and must watch:


Barney Frank Caught Lying About Fannie Mae


carbonmutant's picture

 Obama signed the Debt limit bill last year, talk about a lack of responsibility...

BeerWhisperer's picture

Well, If I have these markets figured out right, we should get some bad news sometime about now or after the bell.



mayhem_korner's picture

Barney...scrape the peanut butter off the roof of your mouth before you speak.   What?  That's not peanut butter?  Oh, sorry...

Logans_Run's picture

It's sticky alright, but not derived from a legume!

Atomizer's picture

That's not peanut butter.. its his boyfriends testicles pinched between his cheek and gums.

JustPrintMoreDuh's picture

Thanks for that visual gang ... now I have to go vomit and then down a litre of Vodka to try and burn it from my mind.

SheepDog-One's picture

Hey Barney why dont you leave the political partisan hack shit at the door and quit trying to blame others for yours and everyone elses total failures and/or criminal conduct?

To assert that Bernank is a Bush appointee is meaningless, and if Bernank was an Obama appointee any criticism of him would be called 'racist'...youve been at the center of this clusterfuk for decades as a puppet for all the criminal banksters so fingerpointing at others now wont work, and is quite lame.

A.W.E.S.O.M.-O 4000's picture

Granted. But blaming Fannie and Feddie for this crisis is like blaming Hitler's tailor for the Holocaust. It's just a drop in the bucket.


knukles's picture

No.  He's blaming Barney.  Fan and Fred are but a symptom, an illustration of the problem.... being less than failing, some would say maleficent decision making by our trusted servants

sun tzu's picture

FHA, Fannie and Freddie bought over 70% of the shit loans during the housing bubble. They were Wall street's dumping grounds for toxic debt. They are more like the Heinrich Himmler of this financial holocaust.