Video: Frank in 2005 — Bubble? What bubble?

posted at 11:35 am on April 24, 2009 by Ed Morrissey

Barney Frank argued this week that he had always warned about the excesses of pushing home ownership and had advocated for rentals instead. Our friends at Verum Serum couldn’t believe their ears, because Frank has long been one of the loudest voices supporting the CRA and Fannie/Freddie policies that encouraged irresponsible lending. Here’s Frank making that clear on the floor of Congress on June 27, 2005, in support of the recognition of National Home Ownership Month:

I think we have an excessive degree of concern right now about home ownership and its role in the economy. Obviously, speculation is never a good thing. But those who argue that housing prices are now at the point of a bubble seem to me to missing a very important point. Unlike previous examples we have had, where substantial excessive inflation of prices later caused some problems, we are talking here about an entity — home ownership, homes — where there is not the degree of leverage we have seen elsewhere. This is not the dot-com situation; we have problems with people having invested in business plans for which there was no reality. People building fiber-optic cable for which there was no need. Homes that are occupied may see an ebb and flow in the price at a certain percentage level, but you’re not going to see the collapse that you see when people talk about a bubble. And so, those of us on our committee in particular, will continue to push for home ownership.

Now check what Frank claims was his position all along:

Now, suddenly, home ownership was a conservative idea, and Frank suddenly realizes that people should only buy houses when they can afford them.  Only a politician could lie with such a lack of conscience, but with a surfeit of sanctimony.

His “Bubble?  What bubble?” performance in June 2005 should become required viewing for anyone who wants the real history of how the economy collapsed.  In another addition to the Someone Left The Irony On Department, Frank scolds the people behind the dot-com bubble for not having realistic business plans while Frank protected Fannie Mae and Freddie Mac from regulators who warned that the two GSEs had the same exact problem.  And Frank was right that the housing collapse wouldn’t be as bad as the dot-com pop — but in fact it was much, much worse, thanks to Congressional action that mandated the creation of mortgage-backed securities that spread the poison of bad loans throughout the global financial system.  The dot-com bubble burst resulted in a mild recession, but Frank’s supposedly-impossible housing bubble collapse sent the entire world economy crashing into a heap.

Clueless?  A liar?  In this case, Frank qualifies as both.

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Comment pages: 1 2

There is one thing Frank said that I found extremely elitist. He said that it’s unrealistic to expect someone making $30,000 or $40,000 to be expected to own their own home. His argument about renting instead of buying is also elitist and moronic.

And very telling of his complete lack of understanding about free markets. Unencumbered from prohibitive taxes and regulations, and a government disallowed from printing fiat money and setting interest rates, enterprising home builders would figure out a way to make single-family homes affordable for that salary range, and bankers would find a way to make financing them realistic.

TheMightyMonarch on April 24, 2009 at 2:07 PM

There is one thing Frank said that I found extremely elitist. He said that it’s unrealistic to expect someone making $30,000 or $40,000 to be expected to own their own home. His argument about renting instead of buying is also elitist and moronic.

And very telling of his complete lack of understanding about free markets. Unencumbered from prohibitive taxes and regulations, and a government disallowed from printing fiat money and setting interest rates, enterprising home builders would figure out a way to make single-family homes affordable for that salary range, and bankers would figure out a realistic way to finance the loans.

TheMightyMonarch on April 24, 2009 at 2:09 PM

Should play these things over and over to make sure that no one misses seeing it. Also, include Rep M Waters meeting where she almost choked herself, trying to hold back saying the word “socialism”.

hillbilly on April 24, 2009 at 2:11 PM

Who wants to bet that CNN nor MSNBC will ever play these tapes? Nor will they ever allow a Conservative on at any hour bring the tapes up.

jeffn21 on April 24, 2009 at 2:26 PM

These aren’t the droids you’re looking for…

Jedi mind trick.

juanito on April 24, 2009 at 2:34 PM

Careful Barney.
You know how wet things get when you talk
out both sides of your mouth.

elderberry on April 24, 2009 at 2:36 PM

Hopefully someone archives that video before it gets taken down due to “copyright issues.”

cthulhu on April 24, 2009 at 2:36 PM

all of you that are calling him names are upsetting Proud Rino.

And Getalife too.

Where are they on this?

Face it; there are gay guys that make even gay guys cringe.

noblejones on April 24, 2009 at 2:48 PM

The left doesn’t give a damn about the truth. They don’t have to. They have a willing propaganda front in the media that will continue to cover for them.

spmat on April 24, 2009 at 2:49 PM

Barney Frank sure got a purty mouth.

SilverStar830 on April 24, 2009 at 3:02 PM

He’s just one huge blowhard. Blah, blah, blah.

AnninCA on April 24, 2009 at 3:22 PM

How does spermbreath keep getting elected?

gbear on April 24, 2009 at 3:30 PM

He’s a liar and an idoit.

Brian Mallard on April 24, 2009 at 3:35 PM

Idiot (damn you fat fingers and dyslexia)

Brian Mallard on April 24, 2009 at 3:36 PM

Congress has become a ship of fools, and Bozo Barney is the first mate (but only because he doesn’t quite approach Captain Nancy’s breathtaking incompetence.)

n0doz on April 24, 2009 at 3:47 PM

If I were picking one member of Congress to have their tongue cut out and tacked to their forehead it would be…

Western_Civ on April 24, 2009 at 4:24 PM

If I were picking one member of Congress to have their tongue cut out and tacked to their forehead it would be…

If you’re suggesting Barney Frank, I think he was born without one. The man speaks like he was repeatedly stung in the mouth by bees.

TheMightyMonarch on April 24, 2009 at 4:38 PM

Not clueless.

A flat out liar.

This liberal ought to be in jail.

iamse7en on April 24, 2009 at 8:14 PM

Comment pages: 1 2