Sunday, September 28, 2008

Dodd and Frank Front and Center?

This is not reassuring, folks. Senator Chris Dodd, Countrywide's VIP client, and Rep. Barney Frank, are not the ones who should be front and center in this bailout negotiation. In last night's press conference, they were both spokesmen for the new legislation.

Our own Texas Congressman Jeb Hensarling has in the past called for an investigation into the preferential mortgages given to some in Congress, including Chris Dodd.(http://www.politico.com/news/stories/0608/11124.html)

Here is a quote from Barney Frank back in 2003:

“These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Barney Frank 2003 in response to Bush administration overhaul plan.

2 comments:

Chris H said...

How about our own Texas Congressman, Ron Paul? In the same hearing that you're quoting Barney Franks from, Paul said,
"Despite the long-term damage to the economy inflicted by the government's interference in the housing market, the government's policy of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing."

Source: http://www.lewrockwell.com/paul/paul128.html

Anonymous said...

If you like the Frank quote, you'll love this one (from the same hearing) : http://www.house.gov/paul/congrec/congrec2003/cr091003.htm