Frank: Fannie And Freddie Must Go

IBD Editorials ^ | August 18, 2010 | Investors Business Daily staff

[Kaslin]

Housing: After years of dissembling and denial, Rep. Barney Frank has finally come out. He now says bankrupt government mortgage giants Fannie Mae and Freddie Mac "should be abolished." Better late than never.

'There were people in this society who for economic and, frankly, social reasons can't and shouldn't be homeowners," Frank said in an interview with the Fox Business Network and sounding a lot more like an elephant than a donkey. "I think we should, particularly, stop this assumption that you put everybody into homeownership."

After years of blaming heartless Republicans and Wall Street for the crisis caused by Fannie Mae and Freddie Mac — and their predominantly Democratic supporters in Congress — it's refreshing to hear a member of the Democratic Party admit his mistakes.

It's especially true of Frank, who, more than any other elected official, championed the cause of the government-sponsored enterprises Fannie Mae and Freddie Mac. Indeed, Frank is most responsible for stopping GSE reform in the early 2000s, at a time when such a move might have prevented the financial meltdown.

Maybe Frank, like so many others in his party, is feeling the heat in this November's election. Democrats' popularity is plunging after years of economic incompetence that has left America's once-thriving economy a shambles.

But give him his due: Frank's comments mark a major departure.

In 2000, when Rep. Richard Baker proposed more oversight for the GSEs, Frank called concerns about Fannie and Freddie "overblown," claiming there was "no federal liability whatsoever."

[FrankR]

[highlander_UW]

Apparently Frank has concluded the democrat party has laundered enough money through Fannie and Freddie.

That raises the question of where they intend to launder campaign money through next.

[dynachrome]

Barney Frankfurter probably wants a straight up gov’t takeover of the whole mortgage industry

[mad_as_he$$]

BP slush fund.

[Scott from the Left Coast]

He's just reading the tea leaves and trying to pull the wool over voters' eyes. To Frank and all the political cronies just like him, it's all about their phony-baloney jobs. They have no skills, no intellect, no capabilities. They are leeches on humanity, just looking to sleaze by doing under-the-table deals with like-minded crooks with resources.

Just like their POS president.

[taillightchaser]

That faggot SOB should be prosecuted for treason for contributing to the downfall of this country.

[razorback-bert]

I am in the wrong universe, I must go to sleep and get back to the one where Barney praise Freddy and Fanny.

[truthguy]

'There were people in this society who for economic and, frankly, social reasons can't and shouldn't be homeowners,"

Hell froze over today. I wonder what the MSM will have to say about Frank's comments? Wonder if it will be covered at all.

[G Larry]

Agree!

Frank, Fannie, & Freddie should ALL go!

[mylife]

[Mobties]

Did Barney break up with (Fannie Executive) Herb Moses?

[Tzimisce]

With the passage of the Financial “Reform” package, who needs Freddie and Fannie?

[Happy Rain]

The GOP will have subpoena power come January—time for Dem CYAs.

[Qbert]

I remembered reading an interview with Frank a while ago after the market crashed, where he said that some people just shouldn't be allowed to buy homes, and it was pretty clear to whom he was referring (anybody else would have been called a racist- but he of course can get away with it...) I think at the time he was angling for some new kind of big government-funded guaranteed apartment rent program- probably still is.

[rbg81]

Is this a parody?

[dalebert]

how about he give back all he pilfered.

[Mobties]

The GOP will have subpoena power come January—time for Dem CYAs.

---

Excellent point, though Im thinking it's a bit late to craft any credible defense of what the Pelosi congress has done since January, 2007, not to mention the sins of the last two years.

[Fred Hayek]

Dismantling Freddie and Fannie does not go far enough. The bailout of Freddie and Fannie was the only part of the bailout that I agreed with, however reluctantly. This was because the Federal Government placed their full faith and credit behind it. Whether such was wise or not (I would say not), it would have been making good on a contractural obligation. After that Freddie and Fannie should have been dissolved and liquidated (assets, not the Stalin style liquidation. We don’t do that here.) Then the upper management of Freddie and Fannie should have been called before Congress and grilled why they screwed up and placed the taxpayers in such a position. Up to and including criminal prosecution if applicable laws had been violated. But that will never happen.

[ri4dc]

It’s Frank who must go. I grew up in MA. I am familiar with the people who keep electing him. Was the same problem as Dead Kennedy. I moved to AZ; where we’re doing the work the Feds just won’t do.