Monday, January 25, 2010

Barney Frank Is Like Putting The Wolf in Charge of The Chicken Coop

Yea, sure this guy Barney Frank, you know the one that came up with the idea of Fannie and Freddie now recommends abolishing them "in their current form" and he wants to design a whole new system of housing financing! Precious! that his first "invention" caused the destruction of our economy he wants to design another system for financing mortgages. It's like allowing a counterfeiter into the bank vault. Barney Frank should be voted out of office if not put in jail for the shenanigans he ran the past few years!

Sixteen months after taking control of mortgage financing giants Fannie Mae (FNM) and Freddie Mac, (FRE) the government is ready to start debating what to do with them.

House Financial Services Committee Chairman Barney Frank got the ball rolling on Friday, saying, "The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance."

The Obama administration has promised more clarity with the release of its fiscal 2011 budget in early February.

But analysts believe their future status is unlikely to be determined soon, both because of the fragile state of the housing market and a lack of political consensus.

Frank's comments weren't especially surprising. The government will eventually have to end its control over Fannie and Freddie, or else give up the pretense that they are not federal agencies. Further, the least likely outcome is a return to their pre-conservatorship ways of seeking to maximize profit while marching to the tune of government regulations and enjoying implicit guarantees. Read at IBD

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