Frank doesn't. But his fingerprints are all over this fiasco. Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that "these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." When the White House warned of "systemic risk for our financial system" unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing.
Now that the bubble has burst and the "systemic risk" is apparent to all, Frank blithely declares: "The private sector got us into this mess." Well, give the congressman points for gall.
Apparently, now Frank has decided that, once the bailout of Freddie and Fannie tanked, they should be dismantled in favor of a New System(To be announced). File this under: "Covering Ones Tracks". One can bet the house that Frank’s fingers will be all over this new system, and therein lays the danger. Frank, who is up for reelection in 2010, has been involved with Freddie and Fannie, well before he took the Chairman of the finance Committee seat in 2007, the year the Democrats took control of the Congress. What lies in store for the Mortgage industry now is anyone’s guess, but with the Obama administration ready to become the sole provider of Student Loans, (see HR 3221 and HR 2669 Here ), one can bet the house that a bigger chunk of the mortgage pie will be controlled by the ever burgeoning “government” should Frank have anything to do about it.
Should the next venture explode a la Freddie and Fannie, into inglorious flames, Frank will be the first to back pedal and cast the blame – elsewhere – anywhere.
How fast can Frank turn on a dime? In response to Scott Brown’s Senate Race, Frank’s first thought was to re-write the rules and abolish the filibuster, however, after learning that newly elected U.S. Senator Scott Brown carried Frank’s district, his tone immediately changed to one that was reasonable - suggesting Brown be Seated without delay. Suddenly, it appears as if Barney is ready to cover his proverbial tracks.
Frank, the consummate politician, will be facing opposition in his district, from both inside his own party as well as from a populist Republican by the name of Earl Sholley. Sholley who had run against Frank in the past, entering the race late, pulled over 30% of the votes in Frank’s district as the “unknown” candidate. Considering that the districts makeup leans more Democrat (due to gerrymandering) it goes without saying that Sholley picked up a Democrat or two in the 2008 race. Sholley a fiscal conservative with a keen grasp of the constitution, has an earlier start this year, and the last FEC filings shows a substantial increase in individual donations over the previous camping. (See Last Quarters Filing) Sholley’s campaign is also effectively utilizing social networking.
Not to be outdone and taking page from the Brown Campaign, Frank has established a Face Book Fan Page, and a new Twitter profile (one tweet) to date. One can be certain that Frank will be changing his tone over the next few months to a “gentler, kinder, Barney Frank”, as the real possibility exists that his hold on the Massachusetts 4th and as an extension the Nation’s finances are in serious jeopardy. Stay tuned for more government intervention ideas from Barney Frank, as well as a whole lot of backtracking should any of his ideas not go over well in Massachusetts.
1 comment:
I think the Frank camp knows something we don't. I suspect they have done some polling or something else and are nervous. He is all of a sudden a new man (so to speak).
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