Is Barney Frank ?

Not really.  Yesterday Jeff Jacoby posted an article at the Boston Globe about recent statements made by Congressman Barney Frank about his role in the mortgage lending crisis.  

The article reports:

"Frank faces a spirited challenge from Republican Sean Bielat, a 35-year-old businessman and Marine Corps reservist. Bielat has turned Frank's longtime support for Fannie Mae and Freddie Mac, the "government sponsored entities'' that aggressively enabled the subprime mortgage lending at the heart of the financial meltdown, into the major issue of the race. During a debate last week, Bielat charged: "By pushing for homeownership, even among those who couldn't afford the homes, Barney Frank put this country on a perilous footing.''"

The YouTube video "Burning Down The House" is a video tour of Congressional statements regarding lending, Fannie Mae, Freddie Mac, and regulation of the mortgage market.  It shows the roots and growth of the problem with statements by the Congressmen involved.  I strongly recommend watching it.

The Democrat talking point about the mortgage crisis is that it was caused by "Wall Street Greed."  Wall Street greed may have played a small part in it, but logically, the problem began when banks were forced to lend money to people who could not afford their mortgages.  Had gas prices remained stable (domestic drilling allowed?), many homeowners could probably have squeaked by, but when gasoline prices neared $4 at the end of 2008, family budgets could no longer deal with the increase. 

Mr. Jacoby reports:

"As far back as 1991, the Globe reported that Frank lobbied Fannie Mae to ease its rules restricting mortgages on two- and three-family homes, even though the default rate on those mortgages was far higher than the rate for single-family dwellings. Was that being a "consistent critic'' of low-income home ownership? How about when he gave a speech in 2005 praising the "advocacy groups that work with us so that we can make homeownership available to people who might not on their own in a market situation be able to afford it''?"

There is nothing wrong with encouraging people to become homeowners.  It is admirable to want to help people acquire assets.  However, to encourage people who cannot afford houses to borrow the money to buy them is irresponsible. 

It's time for a changing of the guard in Congress.  I am hoping that the election of Sean Bielat will be part of that change.