Thanks to Eric of Classical Values I have this bit of news about the housing crisis.
Of all the characteristics of a successful politician, none is more essential than bare-faced cheek. Never has this been more evident than in the past fortnight, as senior Democrat members of the US legislature have sought to lay all the blame for the country's financial crisis on the executive arm of Government and Wall Street.I think the video clip above has given us a truly fine example of Barney Frank's a**hole of steel. I wonder if he can still get a date with out paying for it? You know what is really sad? He is probably going to get re-elected. And you know what is sadder? The Community Reinvestment Act has not been rescinded. So we will get to do this all over again in a few years.
Neither of these two institutions is blameless - far from it. Yet when I see such senior Democrats as Barney Frank, Chairman of the House Financial Services Committee, and Christopher Dodd, Chairman of the Senate's Banking Committee, play the part of avenging angels - well, I can only stand in silent awe at the sheer tight-bottomed nerve of it. These are men with sphincters of steel.
What is the proximate cause of the collapse of confidence in the world's banks? Millions of improvident loans to American housebuyers. Which organisations were on their own responsible for guaranteeing half of this $12 trillion market? Freddie Mac and Fannie Mae, the so-called Government Sponsored Enterprises which last month were formally nationalised to prevent their immediate and catastrophic collapse. Now, who do you think were among the leading figures blocking all the earlier attempts by President Bush - and other Republicans - to bring these lending behemoths under greater regulatory control? Step forward, Barney Frank and Chris Dodd.
Update: It seems Barney had a Fannie Buddy.
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.How is it that these mopes keep getting elected and reelected to Congress? And how is it that a Democrat from one of the most Corrupt cities in America looks like he is in line to become the next President of the United States? Isn't flushing a trillion dollars down the drain enough? H/T for this update is Save Liberty in the comments at Classical Values.
Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.
"It’s absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?
Cross Posted at Classical Values