Barney Frank Is Anything But On Housing

IBD Editorials ^ | October 18, 2010 | The great THOMAS SOWELL

[Kaslin]

You would be hard-pressed to find a politician who is less frank than Congressman Barney Frank. Even in an occupation where truth and candor are often lacking, Rep. Frank is in a class by himself when it comes to rewriting history in creative ways. Moreover, he has a lot of history to rewrite in his re-election campaign this year.

No one contributed more to the policies behind the housing boom and bust, which led to the economic disaster we are now in, than Frank.

His powerful position on the House of Representatives' Committee on Financial Services gave him leverage to force through legislation and policies that pressured banks and other lenders to grant mortgage loans to people who would not qualify under the standards which had long prevailed, and had long made mortgage loans among the safest investments around.

All this was done in the name of promoting more homeownership among people who had neither the income nor the credit history that would meet traditional mortgage lending standards.

To those who warned of the risks in the new policies, Frank replied in 2003 that critics "exaggerate a threat of safety" and "conjure up the possibility of serious financial losses to the Treasury, which I do not see." Far from being reluctant to promote risky practices, Frank said: "I want to roll the dice a little bit more in this situation.

[rockinqsranch]

I think there was a story including a Wizard that had such an attitude as Barney Frank once upon a time.

Thanks for the ping jaz.