Observations

Barney Frank, former chairman of House Financial Services Committee and the Financial Service Committee (leading up to and during the financial crisis) annonces his retirement and the stock market soars.

Just sayin’

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2 Responses to Observations

  1. I’m sure it’s not related. By the way, you would do well to read the following article on the CRA and Fannie/Freddie:

    http://www.ritholtz.com/blog/2011/11/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/

    “The vast majority of subprime mortgages — the loans at the heart of the global crisis — were underwritten by unregulated private firms. These were lenders who sold the bulk of their mortgages to Wall Street, not to Fannie or Freddie.”

  2. Justin says:

    Sure, lots of private firms share responsibility for the mess. However, that is where it should have ended. You don’t need massive amounts of regulation if you simply refuse to bail out the poor decision makers. Then, the next time someone wants to buy a home with faked docs, the surviving firms will tell them no.

    Instead, you bail out the very people who made the bad decisions, in effect rewarding poor business decisions and unethical behavior. The average American had no part in applying for the mortgage they couldn’t afford, nor approving the loan they couldn’t afford. I have a hard time finding any moral basis for making those same taxpayers responsible for the mess in the way congress did.

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