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

Toothless jerk.

UltimateBob on April 24, 2009 at 11:37 AM

Ed. That. Picture. Make. Me. Sick.

carbon_footprint on April 24, 2009 at 11:37 AM

Why do people vote for this man?

Knucklehead on April 24, 2009 at 11:39 AM

ewwww

becki51758 on April 24, 2009 at 11:40 AM

He’s no clueless. He’s a damned liar.
And only our clueless media will ignore this.
Thank god for the Internet & YouTube. It’s the only place to actually find the truth anymore.
At least for now.

Badger40 on April 24, 2009 at 11:41 AM

Never trust a dude who runs a gay prostitution ring out of his basement.

Guardian on April 24, 2009 at 11:41 AM

In a proper world, Frank would have been driven from office and publicly whipped for what he did.

Bishop on April 24, 2009 at 11:42 AM

Frank’s braindead constituents don’t care. They vote for him because hes gay and liberal and that makes them sooooo open minded and progressive.

Speedwagon82 on April 24, 2009 at 11:42 AM

Why do people vote for this man?

Knucklehead on April 24, 2009 at 11:39 AM

Its Massachussets. The Witchhunters get elected to Congress up there.

William Amos on April 24, 2009 at 11:43 AM

Any politician or economists that says some economic condition is “different” should be immediately dismisseed. Fiber lines are a non-entity? The light waves must pass through some phantom means. HAte to stoop to this, but his voice perfectly matches his IQ.

WashJeff on April 24, 2009 at 11:43 AM

Porky Pig seems an appropriate description of the man.

jdflorida on April 24, 2009 at 11:43 AM

Ed. That. Picture. Make. Me. Sick.

carbon_footprint on April 24, 2009 at 11:37 AM

To depict the real Barny, some one should photoshop on a second mouth.

Rovin on April 24, 2009 at 11:43 AM

Thanks for posting this Ed. Lefties (esp. our trolls here at HA), keep acting like the crisis we are now in was Bush’s fault. Here is the real culprit! Of course, we shouldn’t forget Dodd’s roll in this debacle either…

AUINSC on April 24, 2009 at 11:46 AM

Aside from his glaring hypocrisy, the dotcom bubble was heightened by a tidbit folks forget about: Y2K scam.

Is was a finite, $800B boondoggle, based on ignorance and fear. And the moment 12:01 came – it was gone. It was very real, for people told you so, and the money they made was intentionally based on said fear.

Additionally, Frank also screws up another issue:

People building fiber-optic cable for which there was no need

Umm, fiber optic is the backbone of switches, hubs and routers – which control 100% of web, VOIP, TCP/IP in North America. It is costly to have in your home, but absolutely necessary as the back bone of the digital age.

What a friggin tool.

Odie1941 on April 24, 2009 at 11:47 AM

The Democrats in this government are unequivocal lying, cheating pond scum.

rplat on April 24, 2009 at 11:47 AM

Sadly, as this kabuki plays out, the origins of the housing bubble and the subsequent collapse of financial institutions will never be permitted to hit the MSM.

The entire idea that government would compel banks and other lending institutions to disregard prudent credit restraints in the name of making lending “fair” (read: granting mortgages to those who never ever should have been granted such) and then monetizing the loans, with the backing of Freddie and Fanny, and ignoring the hedge fund manipulation of these loans as securities, investment instruments, with the full backing of the US government…

Yeah, that’ll come out in the MSM. /s

Barney Frank and Chris Dodd were at the forefront in pushing this Ponzi scheme forward, refusing proper oversight, and ignoring that poor credit policies are poor credit policies, no matter who applies for a mortgage.

But, that tired old “everyone in America deserves to own their own home…everyone” meme was pushed heavily for well over a decade. To resist made one a racist…not a prudent loan officer trying to protect assets. To demand proper and thorough oversight made on a racist and an evil-Booosh pawn, not one seeking to prevent what any rational observer could predict would happen…eventually.

Sorry, Barney, the veneer has worn off…

coldwarrior on April 24, 2009 at 11:47 AM

Liar liar, pants are flaming. Er, wait.

BadgerHawk on April 24, 2009 at 11:48 AM

What an absolute cesspool Massachusetts is for electing this idiot, and Teddy too.

kirkill on April 24, 2009 at 11:48 AM

Becoming more and more obvious the dems not only undermined the President on the wars, but on the economy as well.

Thank God I live in ‘red-state-for-now’ Nebraska where we still have teachers in high school that point out stuff like this to the kids.

I question my teenage daughter about what her teachers discuss in class and read her textbooks. The books gloss over the Clinton years as being a pity that Clinton was not able to accomplish everything he had hoped for since his hands were tied by the R’s in Congress, yet give him accolades for deficit reduction.

Nearly all discussion on Bush centered on Iraq and Katrina.

cntrlfrk on April 24, 2009 at 11:49 AM

Sadly, as this kabuki plays out, the origins of the housing bubble and the subsequent collapse of financial institutions will never be permitted to hit the MSM.

Correct.

peski on April 24, 2009 at 11:50 AM

Porky Pig seems an appropriate description of the man.

jdflorida on April 24, 2009 at 11:43 AM

No, that’s a total insult to Porky Pig. He never did anything as bad as this BF moron.

kirkill on April 24, 2009 at 11:50 AM

Another OUTRAGE!!! Courtesy of your favorite male congressman. John Murtha is a good man.

maynila on April 24, 2009 at 11:51 AM

Video: Frank in 2005 — Bubble? What bubble?

Translated: (Fanny and Freddie kick backs, Democrats cash cow) What kick backs, what cash cow!!!

byteshredder on April 24, 2009 at 11:53 AM

This man should be in prison!!!

Kjeil on April 24, 2009 at 11:53 AM

THIS is the guy who should have a cap popped in his ass.

LtE126 on April 24, 2009 at 11:54 AM

In a proper world, Frank would have been driven from office and publicly whipped for what he did.

Bishop on April 24, 2009 at 11:42 AM

I’m afraid he might have liked it.

Oink on April 24, 2009 at 11:54 AM

What an absolute cesspool Massachusetts is for electing this idiot, and Teddy too.

kirkill on April 24, 2009 at 11:48 AM

Masssachusetts Congressional Delegation

Senators
E.M. Kennedy (D)
John Forbes Kerry (D)

US Representatives District 1: John W. Olver (D)
District 2: Richard E. Neal (D)
District 3: James P. McGovern (D)
District 4: Barney Frank (D)
District 5: Niki Tsongas (D)
District 6: John F. Tierney (D)
District 7: Edward J. Markey (D)
District 8: Michael Capuano (D)
District 9: Stephen F Lynch (D)
District 10: William D. Delahunt (D)

William Amos on April 24, 2009 at 11:56 AM

Frank’s braindead constituents don’t care. They vote for him because hes gay and liberal and that makes them sooooo open minded and progressive.

Speedwagon82 on April 24, 2009 at 11:42 AM

progressively inane constituents
progressively corrupt constituents
progressively insane constituents

maverick muse on April 24, 2009 at 11:58 AM

THIS is the guy who should have a cap popped in his ass.

LtE126 on April 24, 2009 at 11:54 AM

I’m afraid he might have liked it.

carbon_footprint on April 24, 2009 at 11:58 AM

Thanks for posting this Ed. Lefties (esp. our trolls here at HA), keep acting like the crisis we are now in was Bush’s fault. Here is the real culprit!

AUINSC on April 24, 2009 at 11:46 AM

Yep, good point. Many HA trolls especially get-a-clue are always calling it “Bush’s depression” when in fact those of us with half a brain (not to mention honesty) know for a fact it was the dems (Barney Frank/Dodd especially) that blocked repub efforts to curb risky lending and get more control of FM/FM.

Yet even when presented with absolute proof (the above two videos contrasted) the likes of get-a-clue in their blind and ignorant allegiance to THE ONE will continue to project, deflect, and place the blame where it doesn’t belong!

So, what do get-a-clue et al have to say about this overwhelming evidence that shows without a doubt who was responsible for the current global financial meltdown…

*CRICKETS*

Liberty or Death on April 24, 2009 at 11:59 AM

Waterboard him NOW!

kirkill on April 24, 2009 at 12:00 PM

barney’s bubble

maverick muse on April 24, 2009 at 12:00 PM

The coolest thing about being a Democrat is having most of the media actively cover up your errors or illegal behavior. That would rawk!

Beagle on April 24, 2009 at 12:01 PM

Bo Bo da clown !!

Hummer53 on April 24, 2009 at 12:04 PM

How does a man like this get elected again and again to Congress? We need term limits…

d1carter on April 24, 2009 at 12:05 PM

MSM are treasonous, and co conspirators in the hijacking of America.

marklmail on April 24, 2009 at 12:06 PM

Ol Barn brings new meaning to the term asshat.

Speakup on April 24, 2009 at 12:07 PM

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

Ghoul aid on April 24, 2009 at 12:07 PM

lie with such a lack of conscience, but with a surfeit of sanctimony.

From the viewpoint of the letter to the Romans, this is no big surprise.

Otis B on April 24, 2009 at 12:08 PM

How dare you HotAir…stay focused on Ms. California, thats what real Americans are talking about!

dmann on April 24, 2009 at 12:09 PM

“Bo Bo da clown !!

Hummer53 on April 24, 2009 at 12:04 PM”

More like “Honkin’ the Bo Bo da clown”.

LtE126 on April 24, 2009 at 12:10 PM

The only bubbles Barney knows about are the ones he blew after taking care of his boyfriend from Fannie.

LtE126 on April 24, 2009 at 12:12 PM

Frank’s braindead constituents don’t care. They vote for him because hes gay and liberal and that makes them sooooo open minded and progressive.

Speedwagon82 on April 24, 2009 at 11:42 AM

Unfortunately an increasing amount of voters vote for a candidate based on what’s in it for them (e.g., ideology [gay liberal, progressive, etc.] and/or handouts) and not what is best for the nation as a whole.

As history has shown there are phases a democracy goes though and our nation has moved beyond the complacency and apathy phase and moved firmly into the dependency phase and this does not bode well for the survival of republic and our liberties!

Liberty or Death on April 24, 2009 at 12:12 PM

I wonder how the history books will cover the dismantling and restructuring of the American Dream and foundation of the Great Experiment. I cannot see through my tears,,,have to stop writing.

retiredeagle on April 24, 2009 at 12:13 PM

Barney Frank, aka Peter Puffer, is a sanctimonious piece of shit. And that denigrates shit, which does have a purpose.

GarandFan on April 24, 2009 at 12:17 PM

The fat Elmer Fudd stwikes again.

jon1979 on April 24, 2009 at 12:17 PM

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

Ghoul aid on April 24, 2009 at 12:07 PM

And Getalife too.

Where are they on this?

BacaDog on April 24, 2009 at 12:19 PM

Perhaps Massachusetts should have it’s votes taken away for a while,until they can start running good candidates.

rbj on April 24, 2009 at 12:20 PM

Guys…whatever happened to “The Wall”?

LtE126 on April 24, 2009 at 12:21 PM

he did not push for housing like Pelosi did not know about torture….

PATHALOGICAL LIARS

SDarchitect on April 24, 2009 at 12:22 PM

Guys…whatever happened to “The Wall”?

LtE126 on April 24, 2009 at 12:21 PM

I told him how cool Palin was and his head exploded.

BadgerHawk on April 24, 2009 at 12:23 PM

History Revisioned will view Traitors these as the new Founding Fathers. Obama Nation. Karl Marx, Vladimir Lenin, Bill Ayers, Pelosi, Schumer, Frank, Dodd, Kerrey, Kennedy and the rest will get honorable mention.

The Original Founding Fathers, All Medal of Honor winners and previous Presidents will be mentioned as mis-guided folks that hindered America with notions of the Bill of Rights and individual freedoms as selfish and not in the best interests of the World Community.

Obama Nation. America needs to step up or drown in it!
Now.

old trooper2 on April 24, 2009 at 12:24 PM

What we ought to be REALLY mad about is the fact that not one prominent Republican has had the guts to stand up and point their finger at the likes of Frank and Dodd and say that they are more responsible than anyone for causing this financial crisis. They won’t say it because they’re terrified of being called racists for criticizing the Community Reinvestment Act.

Janeanne Garofolo calls the Tea Party protesters racists. No, we’re not racists, but there is a racial element to it. We’re mad as hell that our economy is going down the tubes, and our capitalism hating President is trying to take advantage of the situation, all because our side have been whipped into submission by the PC police.

When the whole country is on welfare, we can say “at least Black people didn’t get their feelings hurt by having the truth come out”.

ardenenoch on April 24, 2009 at 12:25 PM

The adults in charge?

ManInBlack on April 24, 2009 at 12:25 PM

Frankly, someone should send this post to Mr. Frank.

scalleywag on April 24, 2009 at 12:25 PM

Good thing we have a “Free and Independent” press to hold the political class accountable for their actions………..

………… I was getting scared there for a moment.

Seven Percent Solution on April 24, 2009 at 12:25 PM

“I told him how cool Palin was and his head exploded.

BadgerHawk on April 24, 2009 at 12:23 PM”

He was an easy reach.

LtE126 on April 24, 2009 at 12:25 PM

There’s a great commercial in the footage of those two vidoes somewhere…

D2Boston on April 24, 2009 at 12:26 PM

Frank on housing: This is not the dot.com situation.

He’s darned right. It’s a whole lot worse. Especially for his career. Frank has been living in his gay bubble for too long. :(

poxoma on April 24, 2009 at 12:26 PM

Where are they on this?

BacaDog on April 24, 2009 at 12:19 PM

Funny, I didn’t see getalife in the post about the Rasmussen poll, either.

scalleywag on April 24, 2009 at 12:27 PM

And so, those of us on our committee in particular, will continue to push for home ownership.

Now he’s claiming that it was conservatives who were “pushing” for home ownership?

have you no shame, Barney? [rhetorical question]

He’s an f’in liar.

mankai on April 24, 2009 at 12:27 PM

So he was for home ownership before he was against it?

Snowed In on April 24, 2009 at 12:28 PM

I hold Frank in low regard, but the two clips can be probably be reconciled he believes the following:

–With a house the underlying asset does have an enduring long-term value.
–People who could afford the financing of their home may have a paper loss, but their monthly payments are manageable. They might be illiquid but not in peril.

However, in the first clip Frank does fail to account for the following:
–The lending process had fallen into a model where all parties were indifferent to risk. Therefore, prices and leverage were unconstrained.
–The lending process and politicians did market home ownership as part of “the American Dream” pushing overpriced homes to people through mortgage products that hid the real cost as well as the real earning power of the borrower.

dedalus on April 24, 2009 at 12:28 PM

Porky Pig seems an appropriate description of the man.

jdflorida on April 24, 2009 at 11:43 AM

I just call him aqualung.

forest on April 24, 2009 at 12:29 PM

Do You think he can Swish his way out of this one? Problem is the fast middle class will never hear about this.

regmgr on April 24, 2009 at 12:31 PM

And Getalife too.

Where are they on this?

BacaDog on April 24, 2009 at 12:19 PM

They’ve been getting themselves battered and bloodied as of late on many HA threads (like a mouse being batted around by a cat before the kill) and since this post shows without a doubt who the main culprits were in creating the financial meltdown/housing debacle even they are smart enough to know when their typical moonbat memes of “Bush’s depression” won’t work!

Although I have to admit I would really like to see them post a comment on this thread as I’m in the mood to bloody and batter some trolls!

Liberty or Death on April 24, 2009 at 12:33 PM

Barney Frank is an Agent of Satan! Does this man have any morals? Man if I was a Republican in congress I be calling this dirt bag out on this statement. This man is lower then lowest parasite on Gods green earth. He needs to run out of congress on a rail.

USMCDevilDog on April 24, 2009 at 12:34 PM

Thanks for posting this Ed. I heard Barney the Liar a couple of days ago in that clip you posted talking about how he “always was advocating for quality rental housing” and how this idea of home ownership was not for everybody and that was a conservative idea. Just about ran off the road when I heard that — why isn’t the MSM calling out this hypocrisy and lie? HE was the one who said that Fannie and Freddie were sound. HE was the one who denigrated those who said that CRA was too loose.

AZfederalist on April 24, 2009 at 12:34 PM

All he’ll do is call the critics homophobes.

Oh well,

It’s beautiful here today.

Gonna go fire up the HD and take a ride.

LtE126 on April 24, 2009 at 12:35 PM

Thanks a lot Banking Queen!

gsherin on April 24, 2009 at 12:35 PM

They won’t say it because they’re terrified of being called racists for criticizing the Community Reinvestment Act.

ardenenoch on April 24, 2009 at 12:25 PM

Don’t forget they’re probably also afraid to be called homophobic for questioning Barney…

Liberty or Death on April 24, 2009 at 12:37 PM

Man if I was a Republican in congress

You’d be checking your schedule for your next power lunch with Frank… before you go out and apologize for the Constitution.

mankai on April 24, 2009 at 12:38 PM

Idiot John McCain should have found this video and played it on infinite loop last year. I can’t believe this moron is in charge, that is why our country is so screwed up.

WisCon on April 24, 2009 at 12:44 PM

He is a sanctimonious piece of shit. He should be “flushed” along with the rest of his ilk. I would pay a king’s ransom to personally “debate” this guy on national TV and get hime so flustered that he has a heart attack and drops dead right then and there.

HomeoftheBrave on April 24, 2009 at 12:45 PM

Ed: “Clueless? A liar? In this case, Frank qualifies as both.”

It’s more than that.

Drooling Barney is filled to the brim with self-hatred and hatred at a country who doesn’t appreciate deviants.

notagool on April 24, 2009 at 12:49 PM

One day the Barney bubble will burst. Since the leftists love him, it reminds me how different i an than the left.

seven on April 24, 2009 at 12:51 PM

Why do people vote for this man?

Knucklehead on April 24, 2009 at 11:39 AM

Never been to Massachusetts, have you?

Del Dolemonte on April 24, 2009 at 12:54 PM

Verily, verily I say unto you…. this man is repulsive.

CynicalOptimist on April 24, 2009 at 12:57 PM

He’s no clueless. He’s a damned liar.

Badger40 on April 24, 2009 at 11:41 AM

Damn straight (no pun intended), Badger. Hate is too weak a word to describe my antipathy toward this stuttering, bumbling fool. I once again pledge to do whatever I can to help unseat him in the next election in my district. For now, hoever, I must again hang my head in shame. Hey, at least we’re not Minnesota!

Huckabye-Romney on April 24, 2009 at 12:59 PM

Lest We Forget (again)
The Democrats OWN the Subprime crisis. OWN IT.

Here is the article:
Fannie Mae Eases Credit Requirements to Aid Mortgage Lending
By STEVEN A. HOLMES NYTimes (wonder if he is still employed by this rag)

Published: September 30, 1999 !!!!!!!!!!!!!!!!

http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

In a move that could help increase home ownership rates among minorities
and low-income consumers
, the Fannie Mae Corporation is easing the
credit requirements on loans that it will purchase from banks and other
lenders.

The action, which will begin as a pilot program involving 24 banks in 15
markets — including the New York metropolitan region — will encourage
those banks to extend home mortgages to individuals whose credit is
generally not good enough to qualify for conventional loans
. Fannie Mae
officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been
under increasing pressure from the Clinton Administration to expand
mortgage loans among low and moderate income people and felt pressure
from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been
pressing Fannie Mae to help them make more loans to so-called subprime
borrowers. These borrowers whose incomes, credit ratings and savings are
not good enough to qualify for conventional loans, can only get loans
from finance companies that charge much higher interest rates –
anywhere from three to four percentage points higher than conventional
loans.

”Fannie Mae has expanded home ownership for millions of families in the
1990′s by reducing down payment requirements,” said Franklin D. Raines,
Fannie Mae’s chairman and chief executive officer. ”Yet there remain
too many borrowers whose credit is just a notch below what our
underwriting has required who have been relegated to paying
significantly higher mortgage rates in the so-called subprime market.”

Demographic information on these borrowers is sketchy. But at least one
study indicates that 18 percent of the loans in the subprime market went
to black borrowers, compared to 5 per cent of loans in the conventional
loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae
is taking on significantly more risk, which may not pose any
difficulties during flush economic times. But the government-subsidized
corporation may run into trouble in an economic downturn, prompting a
government rescue similar to that of the savings and loan industry in
the 1980′s.

”From the perspective of many people, including me, this is another
thrift industry growing up around us,” said Peter Wallison a resident
fellow at the American Enterprise Institute. ”If they fail, the
government will have to step up and bail them out the way it stepped up
and bailed out the thrift industry.”

Under Fannie Mae’s pilot program, consumers who qualify can secure a
mortgage with an interest rate one percentage point above that of a
conventional, 30-year fixed rate mortgage of less than $240,000 — a
rate that currently averages about 7.76 per cent. If the borrower makes
his or her monthly payments on time for two years, the one percentage
point premium is dropped.

Fannie Mae, the nation’s biggest underwriter of home mortgages, does not
lend money directly to consumers. Instead, it purchases loans that banks
make on what is called the secondary market. By expanding the type of
loans that it will buy, Fannie Mae is hoping to spur banks to make more
loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to
all potential borrowers who can qualify for a mortgage. But they add
that the move is intended in part to increase the number of minority and
low income home owners who tend to have worse credit ratings than
non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the
economic boom of the 1990′s. The number of mortgages extended to
Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according
to Harvard University’s Joint Center for Housing Studies. During that
same period the number of African Americans who got mortgages to buy a
home increased by 71.9 per cent and the number of Asian Americans by
46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for
homes increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag
behind non-Hispanic whites, in part because blacks and Hispanics in
particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that
by the year 2001, 50 percent of Fannie Mae’s and Freddie Mac’s portfolio
be made up of loans to low and moderate-income borrowers. Last year, 44
percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is
investigating allegations of racial discrimination in the automated
underwriting systems used by Fannie Mae and Freddie Mac to determine the
credit-worthiness of credit applicants. (End Article)

Also: http://www.truthorfiction.com/rumors/f/nyt-fannie-mae-clinton-1999.html

This is low hanging fruit. Time to Pick It.

redriver59 on April 24, 2009 at 1:00 PM

One thing that really annoys me about this whole mortgage mess is that people act like this is the first time in history home values have dropped.

Uh, it happened to me in 1988. I bought my first house in May of 1988 for $79,900. I paid 10 1/4%. When I sold it 5 years later I was lucky to get $68,000 for it. I was also lucky that I was able to put $10,000 down so I got out of that mortgage only owing one mortgage payment at closing, and interest rates had fallen to 7 1/4%. So I was able to “trade up” to a nicer house in a better neighborhood. I paid $100,000 for my second house in December of 1993. Because interest rates had fallen so much my mortgage only went up about $100 a month.

I sold that house for $190,000 in March 2004. That was the biggest mistake I’ve ever made in my life.

I now own a dump that I paid $228,000 for that, if I’m lucky, I might be able to get $150,000 for. But I can afford the mortgage so I can ride out this cycle.

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.

The only difference between renting and owning is the down payment and the ability to prove you can make the payments. The investment renting requires is much more of a financial burden than buying because the upfront money goes to the landlord and not you. Most places require first and last months rent and a security deposit. The average monthly rent in my area for a 3 bed house is $1800. Apartments are not that much cheaper.

If any renter has ever gotten their security deposit back when they moved out I’d be surprised.

My mortgage, after renovations and refinancing, on a balance of $238,000 is $1730.73 a month. That’s at 7 1/4 percent, and includes taxes and insurance. I have 3 beds and 2 baths, an attached garage, and a fenced in yard (I have a dog so that’s important).

That’s less than the cost to rent.

Barney Frank is full of shit. The house across the street from me just sold for $119,000. It’s 3 beds and 1 bath. It’s a fixer-upper, but it’s not much worse than the average rental around here. Whoever bought that house got themselves a great deal and their mortgage will be a helluva lot less than rent.

Jaynie59 on April 24, 2009 at 1:06 PM

When Obama makes comments about republicans engaging in revisionist history I laugh. He seems to have mistaken which party is partaking in the revisionism…

“Bush’s recesion” sure looks to be a lot more like Frank and Dodd’s recession to me.

Scrappy on April 24, 2009 at 1:10 PM

After the revelation made last night On O’Reilly about GE, their control over NBC, and MSNBC, and being in bed with Obama, for yet to come, huge energy contracts, within the cap, and trade legislation, I have to question……

So many others, CNN, New York Times, LA Times, Newsweek, are in financial straits. They’re losing ratings, and readers, but continue on with their quest to exalt Obama, and tank conservatives, by skewering the truth, or hiding it altogether.

Perhaps all liberal media stands to make a killing off of hidden contract deals from Obama, via the tax payers. This could explain why, instead of becoming a more trusted, non partisan, non biased media source, they continue on with their destructive paths, they’ve chosen for themselves.

capejasmine on April 24, 2009 at 1:26 PM

Frank really needs to go for a drive with Ted Kennedy. The man is both disingenuous and ignorant. The bubble was clearly forming and he should have known what could result. He was busy doing “colorful” things in the 80′s and 90′s, but you’d think he’d have at least heard about the consequences of the Japanese housing bubble. More time on current events and less time cruising Bryant Park, Barney.

Stickeehands on April 24, 2009 at 1:26 PM

What a liar!!!!! Who is going to call him on this?

Where are the Republican leaders speaking about this? They already knew it….He said all this again in 2006 when there were efforts to curtail the madness….also on tape….

bperiwinkle on April 24, 2009 at 1:32 PM

Some one has a statistic. it is the number of homes that were purchased with no money down payment and for which not a single mortgage payment was ever paid. This is the extreme fraud and Barney won’t admit it exists.

seven on April 24, 2009 at 1:33 PM

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

Much more the liar; 80/20 split with clueless.

Too bad we can’t read our “independent” troll’s views on these two video clips. He must not have received his talking points yet from the DNC.

Mallard T. Drake on April 24, 2009 at 1:33 PM

Miss California is correct.

Wade on April 24, 2009 at 1:33 PM

The dot com bubble had VCs backing it: people with actual money from actual investments that then made poor investments based on outrageous extrapolated growth rates. MCI took a 6 month growth in fiber optic cable use and extended that out to infinity, while it was just a temporary uptick in use due to the first wave of those going on-line hitting. Yet they laid fiber like there was no tomorrow, got bought up, and then the extrapolation and actual use figures came out a couple of years later and the delta of dark fiber was seen.

We actually used up that delta a couple of years ago, so the infrastructure had a few years of cheap fiber optic cable plant available! Good deal!

The housing loans started out with ARMs, going to people who may or may not be able to take the substantial increases a few years down the road, which was risky enough… then started cutting requirements to have money to put down. Then requirements on assets. Then having a job. Soon no money down, no-interest for two year loans were going out to folks with No Income No Jobs or Assets (NINJA loans). Now how long can that continue? A couple of years. 2005 was the top of the bubble.

And who was pushing for all those lovely lenient regulations? Frank, Dodd and company, plus sweetie Republicans who signed off on that garbage in Congress. Yeah, I got a problem with the Democratic only problem: Republican majorities. That stuff didn’t get through with zero help… not by a long shot. Frank and Dodd are the worst offenders of the lot, but you can start to look at who controlled the committees they were in when the Republicans had control of them. The rot goes not only to the active but the passive players on this: those that stood against loosening regulations and requirements are to be lauded in both parties.

And I do remember hearing a lot of making the ‘American Dream affordable’ from both parties. We got a bubble from that. Would that there was removal of regulations to force these companies to make fiscally sound loans without interference from government wanting to ‘make it affordable’. That didn’t happen. The regulations and the ‘good intentions’ bought this problem from both parties. I’m all for cleaning out the rotten wood, but none escape this Upon the Hill. Rot in both parties needs to go.

ajacksonian on April 24, 2009 at 1:37 PM

Obama Franks Waters LLC — destroyers of the nation’s economy.

unclesmrgol on April 24, 2009 at 1:43 PM

THIS is the guy who should have a cap popped in his ass.

LtE126 on April 24, 2009 at 11:54 AM

LOL-Umm, I think that, in a way, that has already happened.

Many, many times.

-Dave

Dave R. on April 24, 2009 at 1:58 PM

Is was a finite, $800B boondoggle, based on ignorance and fear. And the moment 12:01 came – it was gone. It was very real, for people told you so, and the money they made was intentionally based on said fear.

American ingenuity at its finest. Create the perception of an unmet need, set yourself up as the savior, then make boatloads of cash.

As a pharmaceutical salesman it brings a happy tear to my eye.

TheMightyMonarch on April 24, 2009 at 1:59 PM

Dave R. on April 24, 2009 at 1:58 PM

Thank you, that image is burned into my brain now.

Can Lava soap scrub away the stain on my soul?

TheMightyMonarch on April 24, 2009 at 2:01 PM

He doesn’t think he’s lying.

VibrioCocci on April 24, 2009 at 2:03 PM

Hint to RNC:- He’s not only provided the rope he’s tied in all the right places and he’s standing on the ladder. Do the needful, and rid us of this cancerous bag of putrid puss.

This *man* and his cohorts are directly responsible for this crash. Not only did he push the legislation for the CRA, he strong-armed/manipulated the banks into loaning to those whom they (the banks) knew could not repay their loans.

Left to their own devices, banks never would have loaned to many of the folks who are now in trouble. Only the re-writing of the requirements for F&F, and it’s associated legislation allowed this to go forward. All of that went through Barney’s hands at one time or another. In fact he was the No. 1 cheerleader.

hoakie on April 24, 2009 at 2:06 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 find a way to make financing them realistic.

TheMightyMonarch on April 24, 2009 at 2:06 PM

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