Barney Frank's Big, Fat, Fear-Driven Political Ploy
<http://www.bizzyblog.com/2010/08/19/barney-franks-big-fat-fear-driven-political-ploy/>
Filed under: Economy <http://www.bizzyblog.com/category/economy/>, Taxes
& Government <http://www.bizzyblog.com/category/taxes-government/> ---
TBlumer @ 9:13 am
The Wall Street Journal's editorialists are pleased today
<http://online.wsj.com/article/SB10001424052748703649004575437574151872544.html?mod=googlenews_wsj>:
*Barney to Fannie: Drop Dead*
/Wonder of wonders, miracle of miracles./
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
<http://hotair.com/archives/2010/08/18/frank-abolish-fannie-and-freddie/> 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 <http://seanbielat.org/> actually has a shot at
pulling off the supposedly unthinkable --- taking his congressional seat.
Here's more from Bielat
<http://www.seanbielat.org/news/2010-08-18/bielat-flip-flop-frank-has-election-year-conversion-fannie-and-freddie>
(bold is mine):
... Now, amid a heavily anti-incumbent election year, Frank has
suddenly changed his tune on Fannie and Freddie, telling Fox News
the companies should be "abolished". *Massachusetts voters should
not be fooled by Frank's election year conversion. He risked every
hard working American's economic well-being when he endorsed and
protected Fannie and Freddie's loaning practices.*
"It's pure election-year politics," said Bielat, a Marine and
successful businessman. "The voters are on to Congressman Frank. He
is scared and knows Fannie and Freddie are a huge albatross around
his neck going into November. *Sub-prime mortgages were a primary
reason our economy collapsed and why so many people are out of work.
Nobody pushed harder to increase Fannie and Freddie's stake in
sub-prime mortgages than Barney Frank."*
This is Barney's big, fat, fear-driven political ploy. No one in his
district should even think about buying what he's selling.
Other than the apparent need for an on-board grammarian ("loaning
policies"?), Bielat looks like the real deal
<http://www.seanbielat.org/time-new-voice>.
Impossible? Yeah, that's what they said about Scott Brown
<http://pajamasmedia.com/blog/liberty-1-tyranny-0-after-browns-big-win/>.
The larger message is that this may be the first true "no incumbent in
the president's party is safe" election since the 1974 post-Watergate
ballot box massacre. Pass the popcorn.
http://www.bizzyblog.com/2010/08/19/barney-franks-big-fat-fear-driven-political-ploy/
--
Thanks for being part of "PoliticalForum" at Google Groups.
For options & help see http://groups.google.com/group/PoliticalForum
* Visit our other community at http://www.PoliticalForum.com/
* It's active and moderated. Register and vote in our polls.
* Read the latest breaking news, and more.
