Barney Frank robbed YOU


Voters should ask how this happened
I'm quoting twice from the same Wall Street Journal opinion article in this entry. Both illustrate exactly why government can't be trusted with the free market or anything that "controls" the free market.

There you have the Fannie Mae problem in profile. Mr. Frank wants you to pick up the tab for its failures, while he still vows to block a reform that might prevent the same disaster from happening again.

Now in the free market, if there were a problem with the product, the original company would either fix it or their competition would and outsell the first company. While individual companies may lose out, over time the buyers get the best value for their buck because competition insures that today's products are better, cheaper, faster, and stronger.

There's no such incentive in politics.

Emphasis added in this one.

In January of last year, Mr. Frank also noted one reason he liked Fannie and Freddie so much: They were subject to his political direction. Contrasting Fan and Fred with private-sector mortgage financers, he noted, "I can ask Fannie Mae and Freddie Mac to show forbearance" in a housing crisis. That is to say, because Fannie and Freddie are political creatures, Mr. Frank believed they would do his bidding.

There it is in black and white. Or at least Tungsten and white, according to my iMac.

The "privately owned, government sponsored" companies responded to political imperatives instead of what made financial sense.

Even worse, these multi-billion dollar firms were at the beck and call of one (count him, ONE) Congressman.

Let's sum up.

The original agency was built expressly to circumvent the mortgage market.

It was partially privatized, which ALWAYS gives the worst features of public AND private.

A secondary agency was created for those "special" needs, also partially privatized.

A group of Congressmen used both agencies as political piggy banks to disperse favors.

The solution is going to be more of the same, and it will mean that the "companies" will be shielded even more from the free market and public scrutiny.

Any questions?

— NeoWayland

Posted: Tue - September 9, 2008 at 12:15 PM  Tag


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