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.