Accountability For The Subprime Crisis – Where were you Barney

Barney Frank Told Us So…Again.

By Jim Conley • Sep 6th, 2008 • Email This Post to a Friend •  Print This Post

Remember back in July when Rep. Barney Frank told the Boston Globe that the mortgage giants Freddie Mac and Fannie Mae were “not in danger of going under.” And that, “their prospects going forward are very solid.”

Remember that?

Guess it depends on your definition of solid.  Because today it has been announced that the two companies will be placed under federal control.

Frank is chair of the House Financial Services Committee, and his comments in July were offered to shore up investor confidence in the two quasi-government agencies.  Now taxpayers get to pony up tens of billions in order that these companies might go forward, solidly one hopes.

You know, for someone who is quick to tell others how wrong they are [see this on the St. Aidan’s project], Frank’s tenure as chair of Financial Services has seen one disaster after another.

The log in one’s eye, and all that.

Update: Tomorrow’s Times has a story up on the federal takeover that features this:

“We have just had to nationalize the two largest financial institutions in the world because of policy makers’ inaction,” said Josh Rosner, an analyst at Graham Fisher, an independent research firm in New York, and a longtime critic of the government-sponsored enterprises. “Since 2003, when these companies’ accounting came under question, policy makers have done nothing. Even though they had every reason to know that the housing market’s problems would not be contained to subprime and would bring down the houses of Fannie and Freddie.”

Since 2003?  How could Frank be shoring up confidence in these firms when it was widely known that their accounting methods were suspect?

Well, it’s because those who finance his campaigns are the very industry his Committee is suppose to oversee.  And he thinks we’re chumps.

SEE THE VIDEO: Barney in his own words – Simply breathtaking.

Read Professor Stan Liebowitz’s Article On the History of The Crisis Here:

Read Thomas DiLorenzo’s Article, “The CRA Scam and its defenders.”

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