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More Bad Lending: Rep. Frank's Economic Remedy

By Doug Bandow on 6.24.09 @ 7:45AM

It's a good lesson, as if we needed another one, on why politicians should not be allowed to run (read, ruin) the economy.

Observes the Wall Street Journal:

Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to "roll the dice" in the name of affordable housing. That didn't turn out so well, but Mr. Frank has since only accumulated more power. And now he is returning to the scene of the calamity -- with your money. He and New York Representative Anthony Weiner have sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers.

You read that right. After two years of telling us how lax lending standards drove up the market and led to loans that should never have been made, Mr. Frank wants Fannie and Freddie to take more risk in condo developments with high percentages of unsold units, high delinquency rates or high concentrations of ownership within the development.

Yes, after 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.

Don't worry, be happy.  After all, worrying won't help and crying will just waste a lot of water!