This blog post can also be viewed at the Freedom’s Watch website.
Rep. Barney Frank and his Democratic allies in Congress have a long history of claiming that concerns over the soundness of Fannie Mae and Freddie Mac were overblown, as evidenced by this New York Times story from September 2003.
“These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
“I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.
Frank may defend his sorry record on Fannie and Freddie, but The Wall Street Journal blows the lid on his ridiculous excuses. One thing is for certain, with the failures of Fannie Mae and Freddie Mac and the collapse of the housing sector, Reps. Frank and Watt have got their wish – affordable housing. Indeed, housing prices are becoming more affordable by the day – if, that is, you can find a lender.