Barney Frank does flip-flop on Fannie/Freddie while his seat is being challenged.

[KissMy]

We don't need Fannie & Freddie. When home prices get low enough people will buy them. Who cares if house values plummet. A house is not a retirement account or something to gain equity so you can pull out equity in order to pay off credit cards. Houses are to live in or rent out for earned income. Monetizing homes only leads to inflation.

Typically homeownership is a person's largest investment. Americans buy homes as an investment to either live in a few years so they can sell--make a down payment for a larger home, etc. To add--if property values never went up--why not just rent the rest of your life?

But--standard lending practices in place requiring down payments--collateral--a good credit rating--and qualifiying at conventional fixed rates would have saved us from this economic collapse.

The way it was--someone who was renting who had to put a deposit down on that rental--lost more money when they walked out on their lease--than someone who bought a 500K custom home--with no down payment or collateral required. The problem--We the American taxpayer co-signed that loan. In fact 50% of the mortgages in this country are co-signed by us--"without" our permission.

Homes can be an investment, but like any investment values are not guaranteed, prices rise & fall with market forces. Government decided to back overpriced investments with tax dollars socializing loss but privatizing profits. That is a sure recipe for disaster driving prices to unfordable levels. It is time for market forces to correct this imbalance so the economy & jobs can recover. The faster & more extreme the correction the sooner this depression will end. It is not the tax payers responsibility to bail out real-estate investors who were stupid & bought in at the top of the market with get rich quick dreams dancing in their heads.

If the government does not quit preventing foreclosures & let the market correct then be prepared for an extended great depression that snowballs & creates a self reinforcing feedback loop. Had they let it collapse already we would be in recovery.

 

[asterism]

We don't need Fannie & Freddie. When home prices get low enough people will buy them. Who cares if house values plummet. A house is not a retirement account or something to gain equity so you can pull out equity in order to pay off credit cards. Houses are to live in or rent out for earned income. Monetizing homes only leads to inflation.

Typically homeownership is a person's largest investment. Americans buy homes as an investment to either live in a few years so they can sell--make a down payment for a larger home, etc. To add--if property values never went up--why not just rent the rest of your life?

A fixed 30 year mortgage on my house means I can always live here if I can afford the payment, a payment that is fixed when I buy the house. I don't get that fixed payment if I rent. Also after 30 years I have no payment at all. Sooner if that is my priority.

But--standard lending practices in place requiring down payments--collateral--a good credit rating--and qualifiying at conventional fixed rates would have saved us from this economic collapse.

I disagree. Not rewarding failure and not subsidizing those failure prone situations would have saved us. But that goes back decades, back to the time where never defaulting on any loan actually meant something tangible.

The way it was--someone who was renting who had to put a deposit down on that rental--lost more money when they walked out on their lease--than someone who bought a 500K custom home--with no down payment or collateral required. The problem--We the American taxpayer co-signed that loan. In fact 50% of the mortgages in this country are co-signed by us--"without" our permission.

There is a middle ground. Redlining was a big hamper to not only our economic growth as a country, but also in regional economic growth. Then there were those who could never make much progress towards ownership, and would if only these arbitrary standards were relaxed. I see no problem with a 40 or 50 year mortgage. Those are actually great options for some. The problem was a mix between the government policies with one agenda (yet to be determined) and people gaming the system. This could all have been rectified if people who wanted these "creative financing" options were given the option to agree that they can't renege on this, it's a leg up. But the regulations weren't written for that, and the entire system collapsed. The middle ground here is to get the government out of this sort of stuff since they obviously can't manage it. Loans are loans, and if you don't pay one back, you don't get another one. Everyone gets a shot at their first one, no micromanagement required.

 

[bigrebnc1775]

I do hope the people of Massachusetts are smarter then the banking queen thinks they are dumb.

 

[drsmith1072]

Barney Frank has been all over the airwaves this week with a clear and—we never thought we’d say this—perfectly sound message about Fannie Mae and Freddie Mac: “They should be abolished.”

Well, praise be. Two years ago next month, then Treasury Secretary Hank Paulson put the two government-sponsored mortgage-finance giants into conservatorship, and Congressman Frank declared himself pleased that there was a good chance, according to government bean-counters, that the rescue wouldn’t cost taxpayers a dime. Also at the time, Mr. Frank scoffed at the Bush Administration’s view that Fan and Fred should be wound down, saying it would never happen. One and a half trillion dimes ($149 billion) later, Mr. Frank appears to have seen the light.

Recall that in 2007 Mr. Frank had complained that the reason Fannie and Freddie hadn’t been reformed earlier was “the insistence of some economic conservative fundamentalists in the Bush Administration who, to be honest, don’t think there should be a Fannie Mae or a Freddie Mac.” Welcome aboard, Barney.

In another sign that he’s an avid reader of these columns, Mr. Frank even told Fox Business, “If we want to subsidize housing then we could do it upfront and let the budget be clear about that.” That is certainly a more honest way to subsidize housing and makes us think we don’t write in vain.

This is nice, but Captain Ed at Hot Air says we shouldn’t forget the history. He is of course correct (bold is mine):

That’s … a sea change for Frank. While he nearly dislocates his shoulder attempting to pat his own back by claiming that he has said this all along, it’s simply not true. Frank, in his role on the House Financial Services Committee, played a huge part in creating and maintaining the government intervention that severely distorted the lending markets. Whether or not he ever uttered a comment along the way about overdoing home ownership, Frank’s actions helped to create and maintain those policies, and he defended them repeatedly over the last twelve years.

… Just last year, Frank and his allies were busily claiming that the free market caused the collapse, and that only government intervention could restore American prosperity. Eighteen months into the Obama administration, Frank now wants to sound like a born-again acolyte of Adam Smith, or at least as close as Frank can approximate such a pose.

My theory: Barney “I Really Like the Free Market” Frank is frightened that Scott Bielat actually has a shot at pulling off the supposedly unthinkable

BizzyBlog

And as most of us remember the democrats and Barney Franks continual l "defense of Fannie/Freddie"--here it is:

Make certain to watch Bill Clinton blame democrats for ignoring Republican warnings of this financial collapse at the end of this video. There is no doubt that Fannie/Freddie are GROUND ZERO for this current economic collapse.

YouTube - Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

Basically the federal government thought it would be a great idea to co-sign our names to 50% of the mortgages in this country-in their policy of "everyone deserves homeownership"-using Fannie/Freddie. This while at the same time they were lowering lending standards--using sub-prime mortgages--less than a desirable credit rating--no down payment--no collateral and at times even no proof of income. Wall Street bought these mortgage backed securities up as fast as they could and started trading them in the black hole called the derivities market--also fully supported and defended by Clinton's treasury secretary Robert Rubin and Allan Greenspan. The government built a house of cards that collapsed leaving the American taxpayer holding the bag.

WOW you are actually trying to bring back that dead horse to beat it some more?? LOL

The video has been responded to in the past and the FACT remains that REPUBLICANS were in charge of congress and the committees back in 2004.
REPUBLICANS talked about changing who was overseeing freddie and fannie but in the end ALL they did was talk.
Not one single bill was put on the floor for a vote during the time that republicans had the congress. So the video's claim that democrats "killed legislation" is just a LIE.

So for you to try and bring this spliced together out of context video back and present it AGAIN to blame only democrats is beyond dishonest.

However, thanks for the cut and paste of a blog as if it actually means anything with it's out of context comments and showing that you have no thoughts of your own.

 

[drsmith1072]

Amazing.

Progressives lying about the Housing collapse and Freddie and Fannie. I never saw that coming

And here's another video--of Nancy Pelosi--blaming BOOOOSH over this financial crisis.
FACTS must be very hard for LEFTIES to handle.

[ame=http://www.youtube.com/watch?v=hxMInSfanqg]YouTube - Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis.[/ame]

So you have a blog that feeds you your misinformation, big deal. However, you really should learn that your OPINIONS are not FACT. Just because you say something it doesn't mean it's true. LOL

 

[drsmith1072]

but educated voters know much differently....

What a sweet post!

FM and FM were not originated by Carter, but it's certainly nice to see a conservative admitting that deregulation was part of the problem. By the way, who were three names on the primary deregulation bill? Here, let me help:

It was Gramm-Leech- Bliley.

Gramm (R) of Texas
Leach (R) of Iowa
Bliley (R) of Virginia

Gramm-Leech-Bliley are not even in the same league as Democrats Fannie/Freddie. BTW Bill Clinton signed the Gramm-Leech-Bliley act into law because it was crammed full of the CRA crap that ruined the economy. Clinton & Democrats wanted this to create huge amounts of subprime loans for minorities with bad credit.

Anyone who thinks the repeal of Glass-Steagall was forced on an unwilling Bill Clinton need only read Rubin’s testimony.

A year later Sandy Weill set in motion the forces that would finally end Glass-Steagall. Weill proposed the most audacious financial merger in American history: he would merge one of the largest insurance companies (Travelers), one of the largest investment banks (Salomon Smith Barney), and the largest commercial banks (Citibank) in America. The problem was the merger was illegal in terms of Glass-Steagall.

Independent Community Bankers of America CEO Kenneth Guenther captured the audacity of the deal in an interview with Frontline:

Weill convinced Greenspan, Robert Rubin and Bill Clinton to sign off on a merger that was illegal at the time, with the expectation that Congress would repeal Glass-Steagall. Charles Geisst, a professor of finance at Manhattan College

The Gramm-Leach Bliley Act was first called The ”Citi-Travelers Act” & eventually changed to the benign-sounding name of the Financial Services Modernization Act of 1999 and, like Glass-Steagall it has become known for the key sponsors of the bill as the Gramm-Leach-Bliley Act, for Republican Senate Banking Committee Chair Phil Gramm, House Banking Committee chair James Leach, and Virginia Representative Thomas Bliley. As the bill took form in Congress, the financial industry, particularly Citibank and Sandy Weill increased the pressure.

So republicans sponsored and passed legislation that would have passed based on the vote count whether clinton signed it or not and yet it's still the demcorats fault?? LOL

Don't you republicans ever take responsibiltiy for anything negative?

 

[drsmith1072]

but educated voters know much differently....





What a sweet post!

FM and FM were not originated by Carter, but it's certainly nice to see a conservative admitting that deregulation was part of the problem. By the way, who were three names on the primary deregulation bill? Here, let me help:

It was Gramm-Leech- Bliley.

Gramm (R) of Texas
Leach (R) of Iowa
Bliley (R) of Virginia

Really?-- And I suppose that is why the majority of donations from Fannie/Freddie went to democrats--Criss Dodd being the number 1 donor and Barack Obama the number 2--LOL

These agencies have been primarily DEMOCRAT controlled for decades. The appointees--like Franklin Raines--one of Obama's economic advisors--was appointed to run Fannie Mae--while ripping it off for millions in bonuses.

In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers by increasing the ratios of their loan portfolios in distressed inner city areas designated in the CRA of 1977.[10] Because of the increased ratio requirements, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.[10]

To add to your comment--I don't know why you would feel that conservatives want NO regulation--especially since is was your guy Bill Clinton that deregulated everything. We understand the need for regulation in certain industries like banking--what we don't want is the government to be an exponent of banking--thereby co-signing our names to 50% of the mortgages in this country without our prior approval. After all we're responsible for repayment on those loans.

Fannie Mae - Wikipedia, the free encyclopedia

So while there were a "couple of" Republicans that got their hands dirty in this--there were 10 times more democrats that have everything to do with crashing this economy and leaving the American taxpayer holding the bag on their incompetence.

I really find how the right spins so much hilarious. If it's positive and clinton was president the right gives the credit to the republican controlled congress but if it's negative the right blames the clinton and ignores the fact that there was a republican congress.

LOL

 

[drsmith1072]

Barney Frank has been...

yawn.


---http://mediamatters.org/research/200901080022

Media Matters is about as credible as World Nut Daily.

You do realize that OP cited some lams ass blog a the core of his argument don't you??

Talk about a lack of credibility. LOL

 

[drsmith1072]

Barney Frank and the Dems lie, American housing markets died.

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," -- Representative Barney Frank

back in 2004 that may have been true based on the numbers at that time. However, it's easy to "look back" and take a comment from the past and dishonestly try to apply it to the present in a desperate attempt to make some look bad as you take their comment out of context but then that is what youi rightwingers are good at. LOL

What's funny is how the right attacks obama and tries to hold him accountable for the economic crisis as they refuse to "look back" and hold W accountable even as they "look back" even further to try and hold the democrats accountable for the crisis.

eh who cares that the republicans were in charge back in 2004 and CHOSE to do nothing about it, according to the right even though it was a republican president and a republican congress back in 2004 it's all the demcorats fault. LOL

 

[drsmith1072]

Leftiest of the Left Obamarrhoidal Lieberrhoid hacks
WHO THE FUCK ELSE
the exonerating BULLSHIT
The Dem BULLSHITTERS CORRUPT DEM the CORRUPT Black (Racist) DEM SCAM LYING CRUNT CONSUMMATE Congressional DEM SCAM ARTISTE & BULLSHITTER....the queer
ISN'T THE STENCH OVERWHELMING !!!!!
DEM BULLSHIT that INUNDATED
noticeable SCAMS Barack Hussein OBAMA !!!! The Arrogant Obama BOTH of these SCOUNDRELS......Talk about SCAMS CORRUPT DEMS.....THE MOST PATHOLOGICAL LIAR OF THEM ALL, BARACK HUSSEIN OBAMA BULLSHIT POST

I paraphrased your post for you, guatama

I think you should take a break, man.

The bottom line is that you couldn't and CAN'T rebut a single fact....EVERYTHING IS ON TAPE you Obamarrhoidal Lieberrhoid hack.

Yeah everything is on an edited and spliced together tape that takes comments out of context and sometimes cuts off in the middle of statements as it tries to take comments from the past and apply them to the present. It does this because the author knows that many right wingers are completely retarded and will follow along as they try to blame the dems for the inaction of the republicans who CHOSE to do nothing about it AT THAT TIME when the right had the congress and the WH.

 

[FireFly]

It is unbelievable that media matters & others here twist facts as they do & try to defend the criminal Bawrney Fwanks especially when people post facts proving they lie. It must be sad to wake up knowing you will lie your way through the day.

 

[CrusaderFrank]

It is unbelievable that media matters & others here twist facts as they do & try to defend the criminal Bawrney Fwanks especially when people post facts proving they lie. It must be sad to wake up knowing you will lie your way through the day.

Progressives lie about everything, it's so ingrained that they don't even think they're lying

 

[gautama]

It is unbelievable that media matters & others here twist facts as they do & try to defend the criminal Bawrney Fwanks especially when people post facts proving they lie. It must be sad to wake up knowing you will lie your way through the day.

Progressives lie about everything, it's so ingrained that they don't even think they're lying

It is OBVIOUS.

It's as if they THEMSELVES don't know the difference between the TRUTH, and not only about a DISTORTION......but even an OUTRIGHT LIE !!!!

I just can't understand how they can possibly live a life like that.

The recent (to me) Obamarrhoidal LIEberrhoid phenomenom is this "drsmith" who rat-tat-tat-ed 3 or 4 posts claiming that the TRUTH about the LIEberrhoid GRAND SCAM of blaming Bush and the Republicans is all bogus. That we, the ANTI-LIEberrhoids doctored up the tapes and history of the F&F DISASTER.......THIS DESPERATE TRANSPARENT ATTEMPT TO DESTROY THE TAPED AND DOCUMENTED EVIDENCE IS SO BLATANT AND CONTEMPTIBLE THAT IT SIMPLY BOGGLES ONE'S MIND !!!

And what is shocking......is that the drsmiths, Dantes, 8537s, rDeanie-Weenies, G(oddamn)T(urds), etc., etc., etc., are STILL at it......

And what is even MORE shocking is that quite a few of the American Public and voters (but not on this Forum).....STILL believe in their OBVIOUS DISTORTIONS and TRANSPARENT BULLSHIT !!!!

Consider the idiots in Massachussetts.....they keep voting in the QUEEN of PERPETUAL BULLSHIT, Bwarney Fwanks.

NOW, HOW THE FUCK CAN YOU EXPLAIN THAT !!!!!

 

[KissMy]

It is unbelievable that media matters & others here twist facts as they do & try to defend the criminal Bawrney Fwanks especially when people post facts proving they lie. It must be sad to wake up knowing you will lie your way through the day.

Progressives lie about everything, it's so ingrained that they don't even think they're lying

It is OBVIOUS.

It's as if they THEMSELVES don't know the difference between the TRUTH, and not only about a DISTORTION......but even an OUTRIGHT LIE !!!!

I just can't understand how they can possibly live a life like that.

The recent (to me) Obamarrhoidal LIEberrhoid phenomenom is this "drsmith" who rat-tat-tat-ed 3 or 4 posts claiming that the TRUTH about the LIEberrhoid GRAND SCAM of blaming Bush and the Republicans is all bogus. That we, the ANTI-LIEberrhoids doctored up the tapes and history of the F&F DISASTER.......THIS DESPERATE TRANSPARENT ATTEMPT TO DESTROY THE TAPED AND DOCUMENTED EVIDENCE IS SO BLATANT AND CONTEMPTIBLE THAT IT SIMPLY BOGGLES ONE'S MIND !!!

And what is shocking......is that the drsmiths, Dantes, 8537s, rDeanie-Weenies, G(oddamn)T(urds), etc., etc., etc., are STILL at it......

And what is even MORE shocking is that quite a few of the American Public and voters (but not on this Forum).....STILL believe in their OBVIOUS DISTORTIONS and TRANSPARENT BULLSHIT !!!!

Consider the idiots in Massachussetts.....they keep voting in the QUEEN of PERPETUAL BULLSHIT, Bwarney Fwanks.

NOW, HOW THE FUCK CAN YOU EXPLAIN THAT !!!!!

I even posted Barney Franks letter to cut funding for OFHEO because they blew the whistle on Subprime criminal activity at Fannie Mae. They just ignored this post as if they did not even see it.

 

[FireFly]

Progressives lie about everything, it's so ingrained that they don't even think they're lying

It is OBVIOUS.

It's as if they THEMSELVES don't know the difference between the TRUTH, and not only about a DISTORTION......but even an OUTRIGHT LIE !!!!

I just can't understand how they can possibly live a life like that.

The recent (to me) Obamarrhoidal LIEberrhoid phenomenom is this "drsmith" who rat-tat-tat-ed 3 or 4 posts claiming that the TRUTH about the LIEberrhoid GRAND SCAM of blaming Bush and the Republicans is all bogus. That we, the ANTI-LIEberrhoids doctored up the tapes and history of the F&F DISASTER.......THIS DESPERATE TRANSPARENT ATTEMPT TO DESTROY THE TAPED AND DOCUMENTED EVIDENCE IS SO BLATANT AND CONTEMPTIBLE THAT IT SIMPLY BOGGLES ONE'S MIND !!!

And what is shocking......is that the drsmiths, Dantes, 8537s, rDeanie-Weenies, G(oddamn)T(urds), etc., etc., etc., are STILL at it......

And what is even MORE shocking is that quite a few of the American Public and voters (but not on this Forum).....STILL believe in their OBVIOUS DISTORTIONS and TRANSPARENT BULLSHIT !!!!

Consider the idiots in Massachussetts.....they keep voting in the QUEEN of PERPETUAL BULLSHIT, Bwarney Fwanks.

NOW, HOW THE FUCK CAN YOU EXPLAIN THAT !!!!!

I even posted Barney Franks letter to cut funding for OFHEO because they blew the whistle on Subprime criminal activity at Fannie Mae. They just ignored this post as if they did not even see it.

Dimwitocrats ignore the irrefutable facts & throw around some made up crap one of their story tellers wrote in some article as facts.

 

[CrusaderFrank]

Their fatal mistake is that they still think they control the media.

They think they can lie, make shit up or let stuff like "These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," -- Representative Barney Frank slide down the memory hole.

 

[saveliberty]

Since Congress likes special rules just for them, I would like to see legalized dueling return.

Off my podium, punk!

 

[The T]

http://i126.photobucket.com/albums/p108/Abbthom1/BANKINGQUEEN.jpg

 

[The T]

It is unbelievable that media matters & others here twist facts as they do & try to defend the criminal Bawrney Fwanks especially when people post facts proving they lie. It must be sad to wake up knowing you will lie your way through the day.

Progressives lie about everything, it's so ingrained that they don't even think they're lying

That's how they garner power. If they were truly honest in how they represent themselves? They'd never get elected to anything. So lying has been ingrained to the point that it's how they conduct themselves in their lives. They live their own lies.

 

[Procrustes Stretched]

Additionally, as Media Matters for America has documented, Frank has supported efforts to strengthen oversight of Fannie and Freddie, including:

• In 2005, Frank, then the ranking Democrat on the House Financial Services Committee, worked with committee chairman Rep. Michael Oxley (R-OH) on the Federal Housing Finance Reform Act of 2005, which would have established the Federal Housing Finance Agency (FHFA) to replace the Office of Federal Housing Enterprise Oversight (OFHEO) as overseer of the activities of Fannie Mae and Freddie Mac. After voting for the bill in committee, Frank voted against final passage of the bill on the House floor, stating that he was doing so because an amendment to the bill on the House floor imposed restrictions on the kinds of nonprofit organizations that could receive funding under the bill.

• In early 2007, as chairman of the House Financial Services Committee, Frank sponsored H.R. 1427, a bill to create the FHFA, granting that agency "general supervisory and regulatory authority over" Fannie Mae and Freddie Mac, and directing it to reform the companies' business practices and regulate their exposure to credit and market risk. Among other things, Frank's legislation, titled the "Federal Housing Finance Reform Act of 2007," directed the FHFA director to "ensure" that Fannie Mae and Freddie Mac "operate[] in a safe and sound manner, including maintenance of adequate capital and internal controls" and to establish standards for "management of credit and counterparty risk" and "management of market risk." The FHFA was eventually created after Congress incorporated provisions that House Speaker Nancy Pelosi (D-CA) said were "similar" to those of H.R. 1427 into the Housing and Economic Recovery Act of 2008, which the president signed into law on July 30, 2008.

Indeed, in his profile, Toobin wrote:

In 2005, while the Democrats were still in the minority, Frank contributed to a bipartisan effort to put his objectives -- tighter regulation of Fannie and Freddie and new funds for rental housing -- into law. At the time, Fannie and Freddie were regulated by a small agency within the Department of Housing and Urban Development; the bill proposed to create an independent agency to monitor their operations. Frank and Michael Oxley, who was then chairman of the Financial Services Committee, achieved broad bipartisan support for the bill in the committee, and it passed the House. But the Senate never voted on the measure, in part because President Bush was likely to veto it. "If it had passed, that would have been one of the ways we could have reined in the bowling ball going downhill called housing," Oxley told me. "Barney, to some extent, is misunderstood -- with this image of him as a fierce partisan. He is an institutionalist. He believes in the House and in the process. He eschews the grandstanding style that so many members use and prefers to work behind the scenes and get something done."
​

Limbaugh falsely asserted "Banking Queen" Barney Frank "created" subprime mortgage crisis | Media Matters for America

The facts vs the out of context arguments of right wing dolts and their handmaidens.

some things need repeating...