Barney Frank is more dangerous to the housing economy than Ted Kennedy and an Oldsmobile (RIP Mary Joe Kopechne)! In the Opinion section of the Wall Street Journal (June 24, 2009), it is reported that Barney Frank and Andy Weiner (D-FL) "...sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers."
Lower lending standards? Are you kidding? Is his memory so short that he can't remember what happens when you lower lending standards? Here is a hint, about $1 trillion of taxpayer money flies out the window. Oh, and its foreclosures galore! Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com
Also, when did Representative Frank become a loan officer or underwriter? Maybe, he is just in bed with condo developers or other high power lobbies. In short, he has been shown to be incompetent in dealing with Fannie Mae and Freddie Mac because of his regular protestations that the Titanic wasn't sinking.
Risk management is best practiced by those whose money is on the line. Borrowers can shop around for mortgages and the best terms. If there credit is not so good, they can expect to pay more for the mortgage than somebody with better credit. Its all about risk. This is why most in Congress don't "get it." They enjoy a steady stream of taxpayer dollars whether they screw things up or not. They don't worry about going out of business, because the government can just print more money, or so their thinking goes. People who switched to Allstate saved an average of $396 per year. Quote Now!
Consider how your personal economic situation has changed since September of 2008. Do you believe the Congress, President, and government agencies have had a positive impact on you, and the economy at large? Do you believe that Congress should be pressuring others to take dangerous financial risks? If you think government is the answer, things are only going to get worse. If you think government should stay out of the mortgage business, then consider who you vote for in 2010.
See previous posts about this topic: here, here, here, and here.