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Wednesday, June 24, 2009

Some People Never Learn

There will always be debate among economists about exactly what caused the credit crisis of last year to explode into such a financial mess. However, there is fairly strong agreement about who and what are the primary suspects. The disagreement arises when determining which suspects played the most important roles. My own analysis puts Barney Frank near the top of the list, because he was one of the leading drivers in the push for Fannie Mae and Freddie Mac to lower lending standards. (You can't have sub-prime loans without lower standards.)

Now our friend Barney is at it again, asking Fannie and Freddie to lower lending standards. He's like some sort of creature from a horror movie; just when you think he's gone, he pops back up with an ax and a chain saw.

Of course, let's not forget that it was only a month ago when Barney did this -- "asking" the now government-owned General Motors to keep a parts distribution warehouse open in his district. I can't think of a better way to bring a company back to profitability than to have Barney on board.