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March 05, 2009

Frank Monstrosities
by Mike Shedlock

Barney Frank is in the news. As is typically the case with "Frank News", Barney is throwing stones in the wrong direction. Please consider Frank Seeks to Curb 'Phenomenon of Securitization'.

The "phenomenon of securitization" must be curtailed by lawmakers to prohibit banks and mortgage lenders from shifting all the risk on loans they originate and sell to investors, U.S. House Financial Services Committee Chairman Barney Frank said.

"I will be pushing for legislation that will make it illegal for anybody to securitize 100 percent of anything," Frank, a Massachusetts Democrat, told reporters at a briefing in Washington today. Securitization is a "large part" of the problem in the housing market, he said.

"It's 100 percent securitization that allows bad originations because people make loans and don't have to worry about being paid back," Frank said. "Nobody should be taking more risk than he or she can afford to pay off."

Frank also said he plans to hold committee votes this month on a separate bill to curb so-called predatory lending, as well as legislation to curtail credit-card companies from practices "harmful" to consumers. The mortgage bill will be designed to "rein in the abusive practices that significantly contributed to the current mortgage crisis," Frank said.

Barney Frank Is A Hypocrite

Dear Barney "You are a first order magnitude hypocrite. I am talking about your support of HR 600, the down payment assistance program that allows for 0% skin in the game via seller financed down payments."

FHA loans are blowing up 3 times as fast under programs sponsored by Frank. Inquiring minds who have not yet done so should read Stop The Seller Funded Down Payment Assistance (SFDPA) Scam then send hypocrite Frank an appropriate message.

Is Securitization The Problem?

Some might think that Barney Frank's legislation is appropriate. I don't. The problem is not securitization, but rather policies that foster reckless lending. In other words the the problem is the Fed, fractional reserve lending, and Congress.

Amazingly banks are acting responsibly for the first time in a decade, and guess who has a problem with that. Why it's none other than Barney Frank who wants to force banks to lend.

Please give Barney Frank a call at (202) 225-5931 and tell him how you feel about HR 600, his ideas about forcing banks to lend, and other "Frank Monstrosities".

Frank Seeking Prosecutions for Financial Wrongdoing

Here is an interesting headline: Frank Seeking Prosecutions for Financial Wrongdoing

U.S. House Financial Services Committee Chairman Barney Frank said he wants to see people prosecuted for wrongdoing related to the financial crisis as lawmakers overhaul regulation of Wall Street.

Frank will call on attorneys general, bank regulators and officials from the U.S. Securities and Exchange Commission to outline plans for prosecuting and recovering funds from those responsible for the crisis, he said today at a news conference in Washington.

"What are your plans to prosecute those people whose irresponsible and, in some cases, criminal actions helped bring about this crisis?" said Frank, a Massachusetts Democrat.

"I do want all these people with enforcement powers, state and federal, in that room outlining what their plans are to do these recoveries," Frank said about the March 20 hearing.

"We want to know what proposals there are to recover funds from people who caused this loss of taxpayer dollars and investor dollars," Frank said.

In Favor Of Frank's Proposal

I whole heartedly endorse the proposal by Barney Frank. Furthermore, I suggest we go after the one most responsible for causing the loss of taxpayer dollars. That person is of course Barney Frank.

Barney Frank and Nancy Pelosi have been 100% supportive of every bailout measure to date, ramming them down the public's throat in spite of overwhelming public opposition. Frank and Pelosi, along with Ben Bernanke, Hank Paulson, and Tim Geithner responsible. So while you are at it, please call Nancy Pelosi at (202) 225-4965 and tell her she is to blame for the loss of taxpayer dollars and ask for her resignation.

Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.