Stance on Fannie and Freddie dogs Frank

[Valin]

Boston Globe:

Donovan Slack
October 14, 2010


Republican challenger Sean Bielat has been hammering away at Representative Barney Frank, who is seeking reelection in a district that stretches from Newton to New Bedford. Bielat has called Frank “one of the leaders of the economic disaster.’’ (Jay Mallin/ Bloomberg News)

WASHINGTON — When US Representative Barney Frank spoke in a packed hearing room on Capitol Hill seven years ago, he did not imagine that his words would eventually haunt a reelection bid.

The issue that day in 2003 was whether mortgage backers Fannie Mae and Freddie Mac were fiscally strong. Frank declared with his trademark confidence that they were, accusing critics and regulators of exaggerating threats to Fannie’s and Freddie’s financial integrity. And, the Massachusetts Democrat maintained, “even if there were problems, the federal government doesn’t bail them out.’’

Now, it’s clear he was wrong on both points — and that his words have become a political liability as he fights a determined challenger to win a 16th term representing the Fourth Congressional District. Fannie and Freddie collapsed in 2008, forcing the federal government to buy $150 billion worth of stock in the enterprises and $1.36 trillion worth of mortgage-backed securities.

(Snip)

[SrWoodchuck]

Valin!

 

He lit the match.....and Mae & Mac sank......86'd our economy......he's "Disaster Frank!" - Ghost of Burma Shave

[ErnstBlofeld]

The existence of these two corporation is causing damage to the economy.The July 30, 2008 law enabling expanded regulatory authority over Fannie Mae and Freddie Mac increased the national debt ceiling US$ 800 billion, to a total of US$ 10.7 Trillion in anticipation of the potential need for the Treasury to have the flexibility to support the federal home loan banks