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How Stupid Does Barney Frank Think Americans Are?

By Matthew Vadum on 6.24.09 @ 4:23PM

If you had to pick one lawmaker to blame for the subprime mortgage bubble and subsequent collapse, that person would have to be House Financial Services Committee chairman Barney Frank (D-Massachusetts) who is probably more culpable for the state of the economy right now even than Sen. Chris Dodd (D-Connecticut).

Frank has long pimped the disastrous Community Reinvestment Act and been a loyal friend of Fannie Mae and Freddie Mac. Even as the economy went south last year, Frank stood by the CRA and the two government sponsored enterprises (GSEs). The CRA mandated irresponsible mortgage lending and then Fannie and Freddie, under intense pressure from Frank and a chorus of lawmakers in Congress, bought up those doomed mortgages, bundled them together, and found suckers around the world to buy their mortgage junk bonds. (Note: They're actually called Mortgage Backed Securities or MBSs but perhaps we should call them Mortgage Junk Bonds or MJBs.)

Yet the shameless, inveterate liar now has the audacity to demand that the monumentally reckless Fannie and Freddie lower mortgage underwriting standards for condominiums.

As Doug Bandow puts it:

[A]fter wasting billions in taxpayer dollars to inflate and thus wreck the housing market, Rep. Barney Frank, the "go-to" guy when it comes to fixing the financial system, wants to waste more taxpayer dollars to inflate and thus wreck the housing market.

That about sums it up.

Frank, who is intelligent enough to understand how the economy works, refuses to acknowledge that he played any role in the financial crisis and his prescription for what ails America is more poison.

Meanwhile, as Frank plots the final destruction of American capitalism, Warren Buffett defies the pundits and the Obama administration by saying there is no economic recovery underway.

This has been blindingly obviously to honest observers for some time but sometimes someone like Buffett has to say the emperor has no clothes before people start paying attention.

View all comments (14) | Leave a comment

Ron Pasini| 6.24.09 @ 4:37PM

How stupid does Barney Frank think Americans are? Evidently, stupid enough to keep returning him to power until he assumes room temperature. Thanks for insightful blurb.

Roy| 6.24.09 @ 4:40PM

Actually, billions are already being spent to inflate and wreck the housing market in the form of 100% guaranteed loans by the Federal Housing Administration. 3% minimum downpayment, 100% government guarantee and extremely low credit standards. I don't know, but I wouldn't be surprised to find out they are lower if you are one of the Left's politically favored groups, but even for lowly whites you can get one with a credit score of 608 no problem.

L. Ross| 6.24.09 @ 4:45PM

I saw a fairly recent profile on Barney Frank, the "Smartest Man in Congress". I threw up in my mouth, repeatedly.

I wish the man was just an idiot, but I'm afraid he is actually the spawn of Satan.

Gerry| 6.24.09 @ 5:40PM

... and don't forget that the mortgage interest deduction hasn't been repealed

KevlarKevin| 6.24.09 @ 5:58PM

Where's troll Bob? He always beats up Vadum on CRA stuff. Troll, where are you?????

jr| 6.24.09 @ 6:00PM

Gerry -- you are correct that mortgage deductions are stiil on but do not hold your breath while the Messiah is working on your demise. The mortgage deduction will soon be chaff in the wind for those who are $200k and above. No source for this tidbit but you should make such a wager. I agree with the author's punchline that until Buffet and other money people quit being easy on the ONE we will be slowly creeping toward marxist socialism.

Pete| 6.24.09 @ 6:03PM

Good article on the subject.

http://www.businessinsider.com/why-i-changed-my-mind-on-the-community-reinvestment-act-2009-6

toad| 6.25.09 @ 1:09AM

Barney doesn't have to worry about how stupid the American people are. He already knows how stupid the people of his state are. He's safe.

Ray Torres| 6.25.09 @ 2:07AM

California is the example of what not to do in pretty much everything fiscal. Look at San Diego. Early buyers are getting stuck in condo developments that can't sell and then the developers rent out the remaining units. What will their investment be worth when the majority of the building is an apartment complex? They will be underwater FOREVER. Frank and Dodd needed to be fired at the beginning of the mortgage debacle. Even more so, now. Reed and Pelosi need to bring down the hammer on these morons.

hillary dickson| 6.25.09 @ 5:51AM

I think that not to worry about how stupid the American people are.they already know better about them self.

Rocco| 6.25.09 @ 7:24AM

Ron Pasini's post is right on the mark. My own answer to that would be short and sweet - pretty damned stupid; after all, look at who we put in the White House......

Ted| 6.25.09 @ 8:14AM

Pretty stupid. First of all, they keep reelecting this abomination. Second of all, I guess unless Kieth Overbite "educates" the general populace, they apparently follow just about anyone. I guess I'd say the average American voter is pretty stupid. No concept of founding principles, basic economics, etc, etc, etc.

JBBarnard| 6.25.09 @ 12:28PM

"How stupid does BF think we are?" is a rhetorical question. However, it has a REAL answer: BF KNOWS how stupid "we" are: BH O'Carter, a know marxist communist, was elected Prez of the U.S.S.A. Now, that is STOOPID to the max.

Charles Copeland| 6.25.09 @ 1:31PM

It is clear that Barney Frank thinks Americans are stupid. I wish the good people of Mass. would wake the hell up and choose another representative in the next election cycle. But where are other members of the House of Representatives in keeping this joker in check. Why aren't our other various elected representatives overpowering this little toad? Are they afraid of Barney Fwank? Well, I bloody well am not. Hell, I'd drag the little fascist bullyboy out in public and let him be seen for what he is.