Return of the Barney Frank House-sitting Squad
Commentary by Eugene Delgaudio
It seems we can't leave this man alone for a moment! Once again, Barney Frank (D-Mass.) is using Elected Office as a playground for his shenanigans. In contrast with the classical bully, Congressman Frank feigns the role of protector and defender. The Sub-prime crisis was his opportunity - and $300 billion dollars in loan guarantees may describe his next victory.
In response to the significant rise in mortgage foreclosures, Rep. Barney Frank offered a plan that could help refinance up to 2 million at-risk loans. Furthermore, $10 billion would be devoted to loans and grants to buy and renovate foreclosed homes.
What the public fails to understand is that this bailout would substantiate the largest government takeover since FDR. While turning your ARM into a negative-amortization loan, nothing is forgiven and no amount written off. While protecting the investor from total loss, this bailout offers very little short-term aid for homeowners. The original lender would receive a cash payment and no further exposure to the homeowner; leaving homeowners at the mercy of a newly expanded government.
The Federal Housing Commission (FHC) has become a mechanism for fixed commissions and the monopolization of market data. The simple fact-that homes are too expensive-should not be questioned. So long as the FHC continues to bail out lenders, they will continue taking unreasonable risks. Lenders should accept their losses and learn from their mistakes. This is how the market-economy works.
If Congressman Frank is successful, this bill could end up costing taxpayers upwards of $20 billion. Government will grow, the private sector will shrink, and the recovery of the housing market will be further obstructed.
Rather than defender of the public, Barney Frank is swindler and a con-artist. While promising recovery and riches, he will take everything-one government takeover after another.
* The Barney Frank House Sitting Squad was formed by Public Advocate in 1989 and marched forth in large numbers to rescue Congressman Frank from a homosexual prostitution ring operating out of his one bedroom apartment on Capitol Hill. Declaring the area a Hooker Free Zone, members worked 24 hours a day.
Sources for above information:
http://www.house.gov/frank/fha0308.html
http://www.sifma.org/legislative/washington_weekly.html
http://www.whitehouse.gov/news/releases/2008/03/20080314-4.html