Obama looking at $850 billion jolt to the economy

[Pinocchio Liberal 268]

This is from 2006!

GERSH: You're going to have jurisdiction over many industries in the financial services sector: insurance, banking, housing. What's your top priority?

FRANK: Affordable housing is the single biggest one. We have a terrible housing crisis in this country and I think we now understand that housing is not simply a social good, but it's an economic practice (ph). The biggest difference people will see when we take over from the Republicans is we will reverse their policy of basically letting any affordable housing stock dwindle and not building any new stock. A related issue there is the question of predatory lending. We now have data from the Home Mortgage Disclosure Act that my former colleague Joe Kennedy worked so hard to enact. And now it's pretty clear. If you are African- American or Hispanic, you have less chance of getting a mortgage. And if you get one, you have a high chance of paying more even with other factors being equal for some reason. I think that has got to be a very high priority.

In other words if you cant afford it give it to them anyway. BOOM! massive loans with no collateral or equity. Option arms with no reporting of income or citizenship! BOOM BIG FRICKEN MESS! Then comes Mr. Change! By the time this is over your dollar is gonna be worth a dime. Then comes, you are now dependant on the govament do as I say! Welcome!

http://www.pbs.org/nbr/site/onair/transcripts/061130b/

Marc, comprehend the totality of what Frank said and not just the bits you want to read into it.

Frank is talking about combatting the predatory lenders which grew out of the unregulated mirror industry!

The Affordable Housing Trust hasn't squat to do with the financial crisis. Read up about it in case you are confused.

http://community-wealth.org/blog/index.php...-gains-support/

The National Affordable Housing Trust Fund Act of 2007 (HR 2985), authored by House Financial Services Chair Barney Frank and formerly introduced toward the end of June, aims to construct, rehabilitate, and preserve 1,500,000 units of housing over the next 10 years. A likely source of funding is the proposed GSE Affordable Housing Fund (H.R. 1427), which would create a dedicated stream of funding, estimated at $1 billion a year, from an allocation of five percent of Fannie Mae and Freddie Mac profits to support affordable housing development nationwide. If approved, the national housing trust moneys could be accessed by state and local housing trust funds that provide at least a 50% match of federal funds. At least 75 percent of the funds expended must provide housing for families at 30 percent of area median income or below.

Oh Becca, Becca.

[mRx 16]

This is from 2006!

GERSH: You're going to have jurisdiction over many industries in the financial services sector: insurance, banking, housing. What's your top priority?

FRANK: Affordable housing is the single biggest one. We have a terrible housing crisis in this country and I think we now understand that housing is not simply a social good, but it's an economic practice (ph). The biggest difference people will see when we take over from the Republicans is we will reverse their policy of basically letting any affordable housing stock dwindle and not building any new stock. A related issue there is the question of predatory lending. We now have data from the Home Mortgage Disclosure Act that my former colleague Joe Kennedy worked so hard to enact. And now it's pretty clear. If you are African- American or Hispanic, you have less chance of getting a mortgage. And if you get one, you have a high chance of paying more even with other factors being equal for some reason. I think that has got to be a very high priority.

In other words if you cant afford it give it to them anyway. BOOM! massive loans with no collateral or equity. Option arms with no reporting of income or citizenship! BOOM BIG FRICKEN MESS! Then comes Mr. Change! By the time this is over your dollar is gonna be worth a dime. Then comes, you are now dependant on the govament do as I say! Welcome!

http://www.pbs.org/nbr/site/onair/transcripts/061130b/

Marc, comprehend the totality of what Frank said and not just the bits you want to read into it.

Frank is talking about combatting the predatory lenders which grew out of the unregulated mirror industry!

The Affordable Housing Trust hasn't squat to do with the financial crisis. Read up about it in case you are confused.

http://community-wealth.org/blog/index.php...-gains-support/

The National Affordable Housing Trust Fund Act of 2007 (HR 2985), authored by House Financial Services Chair Barney Frank and formerly introduced toward the end of June, aims to construct, rehabilitate, and preserve 1,500,000 units of housing over the next 10 years. A likely source of funding is the proposed GSE Affordable Housing Fund (H.R. 1427), which would create a dedicated stream of funding, estimated at $1 billion a year, from an allocation of five percent of Fannie Mae and Freddie Mac profits to support affordable housing development nationwide. If approved, the national housing trust moneys could be accessed by state and local housing trust funds that provide at least a 50% match of federal funds. At least 75 percent of the funds expended must provide housing for families at 30 percent of area median income or below.

I agree with you Rebecca that Frank's little project was not the source of the problem, but it is a symptom of it. I very much disagree with your concept that this crises spawned from "de-regulation".

Fannie and Freddie are GSE's, which means that these institutions, while still allowed to keep profits private, are chartered, funded, regulated, and guaranteed by the US taxpayer. The GSE's, who weren't lending their own capital out (it was being printed out of thin air by the Federal Reserve), had virtually no risk of personal loss, and hence they would package these sub-prime loans as MBSs. The banks of course, who originated these loans, could'nt care less who they loaned to, as their loan's default risk was quickly swallowed by the GSEs. Therefore all of these predatory lenders that you mentioned, are merely creations of the monster, that is, regulation.

The ultimate blame can be put on the Federal Reserve, as the artificial prosperity created through the fresh-off-the-press notes, couldn't have been made possible without them.

Regulation caused this crisis. AIG, Fannie, Freddie, and predatory lenders could not have existed without the market-distorting money creation.