Barney Frank On Bank Nationalization: We Are Saving “Capitalism From Its Own Excesses”

• October 15, 2008

House Financial Services Chairman Barney Frank said the Bush administration’s decision to invest directly in banks is a turning point in the debate over regulation. “It has definitely changed Washington, very dramatically,” the Massachusetts Democrat said. “Two years ago, the prevailing opinion was [that] we needed to deregulate further. Now, the argument is [over] what kind of new regulation we need.”
Rep. Frank plans to convene a hearing next week to explore how to strengthen oversight of financial markets. Committee aides are expected to focus on developing legislative recommendations the rest of the year; that would set the stage for action on a sweeping bill early in 2009, when the new Congress is seated.
“This is equivalent to what FDR had to do…to save capitalism from its own excesses,” Rep. Frank said, referring to measures taken by President Franklin D. Roosevelt to calm markets and protect investors during the Great Depression.

First, I’m not convinced that this bank nationalization is even necessary. I think it’s a power-grab by a government (up to and including President Bush) that is using a hysteria they themselves perpetrated to excuse it.
Second, the excesses of capitalism? Give me a break. At the very heart of this financial collapse was two government sponsored entities, Fannie Mae and Freddie Mac, that owned 51% of the nation’s $12 trillion mortgage industry. Those two companies owned all those mortgages because they were being pressured by the government and activists to buy up bad loans on questionable properties made to financially marginal borrowers.
That wouldn’t have happened in a free market situation. Or, if it was happening, Fannie Mae and Freddie Mac wouldn’t have lasted long enough to get to a point where they controlled over 50% of the market. That they did, and that they controlled over half of the market, was because they were sponsored by the government and were benefiting from government intervention in borrowing/lending decisions.
This has nothing to do with capitalism, and everything to do with the excesses of government.

Tags: Domestic Issues, Politics

http://www.yahoo.com/ Gary M.

Barney Frank? The Fox quoting from the Hen House.

In 1985 I worked for a Saving and Loan in Southern Cal. as a loan agent. We had many types of Real Estate Loans, but they generally fell in to two categories. The first, Portfolio Loans – Loans that were to be held by the bank as long term investments. The second, Fannie Mae loans. At that time, every Fannie Mae loan had to be perfect in order to package it for sale. All the loan to value ratios, debt coverage ratios, every T crossed, every I dotted. That all changed with the CRA, and the pressure of Dodd, Frank, and others.
HG

“This is equivalent to what FDR had to do…to save capitalism from its own excesses,” Rep. Frank said

Translation: “Freedom in the market is a problem. We are going to remove much of it.”
di butler

“Two years ago the prevailing opinion was that we needed to deregulate further.”

By whom? Let’s have names. I think everyone of them need to have their money grubbing fingers lopped off, and GW needs to be knocked upside the head for going along w/this crap. You know, most of us knew he wasn’t a “real” conservative when he was elected, but this is ridiculous. McCain is in that same vein, kowtowing to the left. Look at the way he has let Obama dictate every turn in this election. It is galling having to vote for these damn pseudo-cons that people like Buckley,Jr., Kristol, Brooks,etc wanted. Well, you’ve had ‘em. We the people have to say no to this. Not ever again. If McCain had of shored up the base and stayed fully to the right, no bailout, he would be up a good bit right now.
robert108

“This is equivalent to what FDR had to do…to save capitalism from its own excesses,” Rep. Frank said

Barney is wrong on the facts; the New Deal didn’t cure the Depression; it lengthened it. It was the increased productivity and faith in America that it took to defeat Nazi Germany and Imperial Japan that reinstituted “capitalism” and saved the economy.
http://www.willisms.com/ Zsa Zsa

Wow! What nerve he has. He should be ashamed of himself.
bill-tb

Bawney Fwanks will say anything to save his own loins.
http://sayanythingblog.com/ likwidshoe

Did Barney Frank say two years ago?

Oh, maybe he means the “prevailing opinion” among DEMOCRATS.
http://ndgoon.blogspot.com/ goon

If people can’t see what is happening to this country they should be very scared, we are no longer the USA we are going to be the United States of Amerika or the socialist republic of the USA.

SayAnythingBlog.com

Barney Frank On Bank Nationalization: We Are Saving “Capitalism From Its Own Excesses”

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