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.”
BEFORE the coronation of Obama it was Bush’s fault....the PUBBIES didn’t want any regulation....blah blah blah...
lie lie lie....
Interesting read.
He should be jailed.
ALL involved in this swindle need to go to jail. We'd have to call another election.
**ALL involved in this swindle need to go to jail.**
And I want that PERPWALK to look like a CONGA Line!!
In case you don’t know, the CRA is the ‘Community Reinvestment Act’ the democrats created in 1977 during the carter admin.
Wouldn’t that be a sight to see. Half (or more) the Democrat party chained together being loaded on the bus...
**Half (or more) the Democrat party chained together being loaded on the bus...**
I’d almost PAYPERVIEW to see that!!
What a sick, morally bankrupt Congress we have, that would actually allow such a bloated, sexually deviant pervert to oversee our nation’s finances. No wonder we’re screwed.
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