This page has been archived and commenting is disabled.
InTrade Bets On Barney Frank Hypocrisy Off The Charts; The Democrat Wants To Abolish GSEs After Seeing No Housing Bubble In 2005
In 2005, the Massachusetts Senator saw no housing bubble:
Today, the very same supposed "authority" on the housing crisis wants to go ahead and abolish Fannie and Freddie entirely. Just what act of god or satan made this person, who completely ignored the housing bubble as it approached its peak, a voice on what should or should not happen to the GSEs? Will the good votes of Massachusetts, who recently decided to take the fate of the country into their own hands, please finally eliminate this persistent threat to the stability of the U.S. economy that are Mr. Frank's irresponsible, irrelevant, unjustified and clueless opinions.
From Dow Jones:
Fannie Mae (FNM) and Freddie Mac (FRE) should be eliminated in their current form by lawmakers, who must design a new way to
finance the U.S. housing market, a top House Democrat said Friday.
"As I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their present form and coming up with a new whole system of housing finance (is in order)," House Financial Services Chairman Barney Frank (D, Mass.) said at a hearing.
The two mortgage finance firms are currently controlled by the government, which was forced to take them over to avoid their collapse in September 2008.
The Obama administration has said it plans to release a proposal for what to do with the firms later this year.
- 10583 reads
- Printer-friendly version
- Send to friend
- advertisements -


No way in hell Barney abolishes the GSEs.
His successor, on the other hand...
They should get rid of the GSEs. I have no clue how to do that without imploding the market but it needs to be done.
the only reason it hasnt all fallen already is all the BS. While it may play havoc with the markets for a time, without getting the leverage out and getting to a real bottom, we'll continually have rolling crises.
BSBSBSBSBSBSBSBS.
MM. I think it will roll, down, for a few months. Then "Jobs Program", Volker tries to play catch up (good luck), but then...HYPE HYPE HYPE!!!
Dow Jones? bullshit, Zero Hedge had it posted here first, check the compensation hearing link for the time/date stamp.
Also, if Barnie wants to prevent the break-up of big banks for 3 to 5 years, what says his hypocrisy doesn't also include that?
We need to have a midnight shredding party
for the whole thing! stat!
His boyfriend must have left him for a younger, thinner, less lispy congressman. Payback's a bitch.
As a conservative, I'm willing to give the dems the slightest bit of credit here. When the voters send a clear signal that things are going badly wrong in the financial industry, at least the dems are giving lip service to making some meaningful changes. Whether that lip service holds up in the face of a Wall Street temper tantrum, with concomitant shitstorm in the markets, is another matter entirely.
yeah, except I thought that was what happened in November when he was running for prez...
Barney Frank should be behind bars with some banksters. Barney, Dodd and other Democrats protected Fanny and Freddy from the Bush administration that wanted to rein them in. Cramer said the Bush administration gave up and viewed Fanny Freddy as Democrat preserves. That Democrts would slime the Bushies as being anti-Black anti-Hispanic if there was some discipline exerted
I'm glad you cought that - So they are gonna dump FNM and FRE hugh? Would someone like to tell me where you put over 100bln in trash? Amazing.
notice he didnt say nything about abolishing them and leacing just a free market. I shudder to think what the next iteration of governement aided housing will be. Politicians are truly incapable of ever seeing the tuth in almost anything.
A new version of the Reconstruction Finance Corporation of the 1930's may be coming -- in effect a national bank to augment the private banking sector, which will remain moribund for years, due to its trillions in off- balance-sheet exposure.
"As I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their present form and coming up with a new whole system of housing finance (is in order)," House Financial Services Chairman Barney Frank (D, Mass.) said at a hearing.
No Mr. Frank! We don't need a new way to finance housing. Once Fannie and Freddie are eliminated (yeah...like that will happen), the government needs to leave housing finance to the private sector. Banks will be a lot less likely to take inordinate risks without governement subsidies or insurance. Lawmakers are quick to cast blame on the banks and financial institutions, but it is the lawmakers that initially instigated and pushed for "universal homeownership."
The operative qualifier is "their present form."
I agree wholeheartedly, though the devil is in the details. The current private/public hybrid is a genetic monster transferring wealth to undeserving executives and Wall Street elites---a place to dump bad casino bets on taxzpayers. Make them all public but not a toxic dump for the WS casino.
I am sure Barney Frank is consulting with Goldman Sachs right now as what to do. What to do with the GSE's and what kind of job he can have once he loses his next election.
Great stuff,TD.
Plunge then flush these turds in DC.
+1000
"Fannie Mae (FNM) and Freddie Mac (FRE) should be eliminated in their current form by lawmakers, who must design a new way to
finance the U.S. housing market, a top House Democrat said Friday."
He want Congress to redesign how the entire housing market is financed? Dear god. Of course, the government is currently financing the whole housing market, so maybe he's just making it explicit.
Well no the governments uncontrollable mistress the FED currently finances the ENTIRE housing market by counterfeiting savings. Unfortunately we destroyed high paying jobs and ate savings with very effective you suck if you don't buy our 5 grand tv ad campaigns. Now they just have counterfeited nothingness that is collapsing into a black hole of nothingness.
This will lead into the gold lovers paradox. The people lose faith in the system. The people run to gold. If they collapse the price of gold they collapse the savings that thier counterfeiting operation depnds on. So they have to confiscate and then pump the price of it WAY up to reinflate their counterfeit collidertron with joy bliss particles so it can shoot out bullshit meson particles.
Scott Garrett actually has some good ideas.
Always enjoy Elmer Fudd's financial mumbling. Of course he has done nothing wrong and it is someone elses fault we are in this economic mess.
That guy needs to go to a psych ward along with anyone who voted for him.
....or nevermind. He might like it there.
If he plans to abolish them then it's so that he can combine them into 1 entity and make them a branch of the government, which they already are. So more illusion of change.
Hope and Change is really just the illusion of nationalizing Fannie and Freddie with a new name since they are already nationalized......Wait, what??
The only problem with your argument is that in 2005, Barney Frank was not the committee chairman. He was in the minority. All your comments could apply just as well to the Republican in charge at that time.
Wasn't it the Dumocrats that pushed the banks into financing houses for people who really couldn't afford them?
When I wanted a house I had to come up with 10% down and the payment was fixed and could not be more than (I really can't remember exactly, but I think it was about) 25% of my gross income. Go back to sound financial strategies that work!
Mr. Frank
Its all happening....
Homes do not have high leverage? Ha. Haha. Hahaha. Hahahaha. Hahahahaha. Hahahahahaha. Hahahahahaha.
I know several people who recently bought homes, and
EVERY SINGLE ONE OF THEM
is getting a tax-credit (AKA "rebate") LARGER than
the required (government-sponsored-via-FHA) down payment.
Which means, the leverage is INFINITY.
No, Barney, that's not leverage or speculation.
Nah. Where did you learn concepts, Barney? Oh, I forgot, you only learned to MANIPULATE and LIE with concepts.
What is really needed here is a real house cleaning. Vote them ALL out. The Democrats created this mess back with Pres. Carter, and made it much worse under Pres. Clinton,but the only Republican who even brought up what was going on was Pres. Bush and the Republicans in congress did nothing. We need to get ALL the incumbents out and replace them with AMERICANS who can and will read and understand the US Constitution and listen to their constituents. The current bunch are too worried about their careers and have no sense of honor and duty. That is why, even when their are BIG questions concerning the eligibility of Mr. Obama to even be President they do not have enough balls to do their constitutional duty and get REAL answers. That is also why we are having all these shenanigans and bribes going on in both houses of congress. I totally disagree with the comments Sen. McCain made concerning the money corrupting everyone in congress. The lack of moral center and lack of honor along with a lack of guts is what has corrupted them. I was a Loan officer and REALTOR. You can not make the industry take the kind of RISKS that were forced on it in the name of Political Correctness and not expect the hammer to fall eventually. I turned down loans that were within federal guidelines at times because they only set the clients up to fail within two to three years. I am not trying to blow my own horn, but any system that sets people up to fail no matter what is a bad system.
I like this debate
I think "anonymous" has his head up his ??? if he believes the bull he said about the Bush era was the correct era. Bush stole the election and he has to be the stupidist President we ever had. I do agree that all of the government big shots are only in it for their career advancement. If just one Senator or Congressman would do his job honestly , things might change a little. I agree getting a house was way too easy for the last 10 years. That is why we are in a recession now. Also the CEO's making loads and loads of cash sure does not help. The banks are stealing our money just like holdup men and the same goes for the credit card industry. Everything has just gotten so out of hand and the government has way to much power and interest in everyones life. They know where you shop, what you buy and when you go to the bathroom. What happen to our country of the free. P-OFF