Posted on 11/11/2008 5:35:33 PM PST by Libloather
Barney Frank explains government’s role in bailout
By Julie Onufrak/GateHouse News Service
Tue Nov 11, 2008, 02:54 PM EST
Randolph - U.S. Rep. Barney Frank said on Monday that he believes sensible regulations and another economic stimulus package will play key roles in solving the nation’s economic crisis.
Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, Frank said he believed that the root of the current crisis was a trend of pushing people toward home ownership who couldn’t afford it. He lamented what he called excessively negative reactions to the construction of affordable rental housing.
Frank called securitization “a great innovation” that needs sensible regulation – much as trusts and the stock market have been successfully regulated by the government and private sector working together. He said there is a need to restrain the abuses of securities while still allowing their dynamism.
“A number of people saw the subprime mortgage problem,” he said. “What very few people saw was the extent to which modern, very powerful, very sophisticated financial techniques allowed those bad loans to be so widely spread throughout the globe that they brought down the whole financial system temporarily.”
Frank, a Newton Democrat who chairs the House Financial Services Committee, also wants to make sure that the bailout package recently created by Congress for the financial industry has its intended result of opening up lending, and that companies receiving funding do not use it for other purposes, such as executive bonuses.
He also said he supports an additional $150 billion economic stimulus bill that he hopes will include an extension of unemployment insurance and extra funding to states for infrastructure projects and Medicaid.
Frank said he views recent financial regulatory history as a thesis, antithesis and synthesis. The thesis was President Ronald Reagan’s belief that government was the problem; the antithesis is the reaction to the current crisis, which is leading to what Frank admits is too much governmental intervention in the financial system for the long run. “I don’t want the government owning banks,” he said. “Next year, our job is the synthesis.”
Can this perp be sued?
I hope so. He should be sued
A key role to economic recovery would include Frank resigning or being impeached.
idiocy. as RL would say, “a glittering jewel of colossal ignorance”.
Best bet for America is that Barney takes a big flying leap.
It was legislation, not regulation that caused this problem.
Nine of 14 agencies already regulate without accountability these businesses - maybe if a hack lost a job or pension over failure it might stop in the future.
Governments passed laws against banks to force this to occur, want proof, no credit unions were harmed.
**“a glittering jewel of colossal ignorance”.**
An Honest explanation would put Frank in PRison for YEARS ... Yea this I gotta hear ... thumday
In case you've forgotten your Marx,
Capitalism was the thesis
Socialism was the antithesis
and communism was the synthesis
Is Frank trying to tell us something about what's going to happen "next year"?
Pruitt-Igoe, Cabrini Green, the Rezco rental properties, and many, many more examples. I wonder why the negative reaction, eh, Barney.
The government sponsored and taxpayer paid for rental housing turned into cesspools of roach infested incubators of crime and despair. And the reaction was excessively negative!!! Makes one want to tear their hair out.
"A glittering jewel" is not a term that should ever be used in context with Barney Frank. "A backed-up stool", yes. But not "glittering jewel".
He could go live with Franklin Raines in his $7M condo at the Ritz Carlton in DC. Maybe they could start up a high-class escort service out of the hotel.
forgotten that part of it... Sounds more like a THREAT to me!
Every time I see a picture of Frank on TV or in the papers I try not to look thinking of where his mouth has been....
What a word picture....totally gross.
"We'll do exit tax relief. We’ll do whatever it takes."
Leader (Barney Frank RAT-MA) of New Congress Promises to Preserve, Build Affordable Housing
PRECISELY!!
The two faces of Barney Frank? I guess he really does believe that over half the people in this country are stupid and they all voted for Obama.
I think Frank is beginning to show signs of psychosis.
This problem did not start with Reagan. It started with FDR’s creation of Fannie Mae.
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