Tuesday, January 5, 2010

Quote of the day. Barney Frank madness

Try to watch this without throwing up all over your computer.

In a discussion with
CNBC, Barney Frank makes too many absurd arguments to mention. Among other things, he equates reigning back reckless mortgage borrowers to taking banning driving due to drunk drivers, saying that "well we couldn't just ban driving all together, so you just deal with it." No, FREAK, but you could take away the drunk drivers' keys!! Just like you could make borrowing tougher for those unqualified.

Instead, Barney Frank says that Fannie and Freddie losses are completely acceptable, as these losses are now part of a new "PUBLIC UTILITY" for promoting home ownership.

"Remember now that Fannie and Freddie have been converted," Frank said during an appearance on CNBC. "Part of the losses of Fannie and Freddie are that since the housing collapse, Fannie Mae and Freddie Mac have become a kind of public utility."

"They're not what they used to be — that inappropriately hybrid, private stock company, public policy instrument," Frank said. "They have become the public utility that finances housing in America to a great extent. Part of the loss is a public policy decision that it would be worse to not have some support for the housing market."

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