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Barney Frank’s policy on bad loans

By   /   November 4, 2009  /   Comments

Barney Frank. What can you say about the guy that he won’t say for himself? I mean really, when he tells the New York Times, “I don’t think it’s a bad thing that the bad loans occurred. It was an effort to keep prices from falling too fast. That’s a policy.” It’s a policy? Really?

Running around town with underwear on my head and screaming “I am Boudicca, queen of the Celts” might be a policy too, but that doesn’t make it a good idea, now does it?

First, it’s only a member of Congress who can honestly look someone in the eye and say that they don’t think that it’s a bad thing that bad loans occurred. The fact that people got loans they can’t pay for seems irrelevant to him. Not only that, but to “keep prices from falling too fast” was a worthy goal for government involvement. The fact that letting prices falling could actually make housing more affordable for people who would…oh, I don’t know…maybe not default on their freaking loans? Hm? Sound like a plan?

Yes, I understand that to homeowners, prices falling to fast can hurt their investment. But I also know that this is the kind of thing that happens with investments. Investments of any kind come with some risks. Stocks, real estate, even bonds come with some risk and rarely is there any government intervention in your investments. What’s more, there shouldn’t be.

With my own personal investments, I reap all the benefits and profits which is as it should be. I also understand that I bear all the risk. Again, that’s as it should be. Why should the taxpayers bear the risk for my investment? Why should anyone but me? They shouldn’t.

And yet Barney Frank thinks that government should be fine with bad loans because they protected investments? I hate to break it to Rep. Frank, but those people who took out bad loans? They’re still going to default, and those home values are still going to go down. And he knows that, which is why he said they were trying to prevent home prices from falling to fast. What I hate to break to him is that those efforts are actually preventing recovery.

You see, when prices bottom, people will start to buy. It’s like any other bubble. It won’t recover until people are confident that prices aren’t going down any more. Then, they’ll start to buy. What will that do? Is the word we’re looking for “recover”? Why yes it is!

You see, while Barney Frank may think it’s “a policy”, I just have to point out that it’s an idiotic policy. But what more do we expect from Barney Frank and his crew?

tomknightonWritten by Tom Knighton. Read his blog at SWGA Politics.com. A lifelong political junkie, Tom started out his adult life as a journalism major at Darton College before leaving school to serve his nation as a U.S. Navy Corpsman. Through the years, he has watched government from outside and inside. A former Reagan supporter, then later a Democrat, Tom now finds himself quite comfortable as a card carrying Libertarian and all around smart-elec.

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  • Published: 1816 days ago on November 4, 2009
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  • Last Modified: November 2, 2009 @ 8:59 pm
  • Filed Under: Tom Knighton
  • Tagged With: economy, money
 

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