The Barbershop has re-located

The proprietor has moved the shop to ChicagoNow, a Chicago Tribune site that showcases some of the best bloggers in the Chicago area. You can logo on to the Barbershop home page here. The ChicagoNow home page is here.

You'll still be able to post comments with the same ease as in this location. The proprietor also will keep this web site alive if you wish to review old posts.

Thursday, March 12, 2009

Who caused the housing meltdown?

1 comment:

Mike V. said...

Barney Frank is the face of our current credit crisis and resulting economic funk.

In 2004 Senator Frank claimed that there were no safety or soundness issues at the government-sponsored enterprises Freddie Mac and Fannie Mae. He stated his position in more than one forum, in more than one hearing--that is an undeniable truth. Something that he is so good at hiding from. His opposition to the calls for oversight or "regulation" from the Bush White House or the Republican Congress were loud enough to send the sissy Republican members of the House banking and finance committee packing, literally. It was their lack of character, their inability to stand up to the lunacy of the ridiculous idea that government should promote lending to those that cannot repay, and other similar liberal lite ideas, that cost them the leadership position. That is what got them ejected from the majority and rightfully so. They have been fired with cause. Until they come to see that they are the problem, until they come to see that the message is not the problem, there will be no Republican majority.

Today we are seeing the effect of this character of convenience. A government run amok! We spend trillions borrowing our way out of a credit crisis. Our budget deficit soars to a percentage of GDP that is unheard of and we hear talk of another stimulus package. I say bullshit! Enough is enough. We propose the rewriting of mortgages, imagine, one day you have loaned someone $300,000, but the next day the government says it's worth only $200,000. Who in their right mind would want to make one more home loan? If you are at risk of having your money confiscated by the government when they decide to rewrite the agreement between the borrower and the lender, who is going to make such a loan? No person, no institution, in their right mind would make that loan.

Then we wonder why there is a crisis of confidence in the financial institutions?! There can be no financial industry if you take away the concept of a legal and binding contract. The financial institutions, AIG, Bank of America, Citibank, etc.. , the business, GM, Chrysler, that could not survive the storm should have been allowed to fail. Regardless of the party in power, Republican or Democrat, regardless of the name of the president, Bush or Obama, the idea of taking money from the American taxpayer to take away the sting of these bad business decisions is unconstitutional, un-American, and just damn well wrong.

Make no mistake. Barney Frank and his buddies are smart, very smart. They knew that the only way for them to reform the government, the financial institutions, the auto industry to their liking, was to break it first. They had to break it so they could fix it. Frank should resign his position as Chairman of the Banking and Finance Committee, he should resign from Congress for his role in the destruction of the Global economy. I refuse to let it slide. Who caused the housing melt down? Barney Frank did. I am so sorry Barney, you think that you can blame Bush, your video, your testimony are all on file for the world to see, you are the problem, not the solution.