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Be Very Afraid

This was sent to me by a loyal reader, with the email subject "Be very afraid"

WASHINGTON (Dow Jones)--House Financial Services Chairman Barney Frank,
D-Mass., predicted that 2009 will be the "best year" for public policy since the
New Deal.
 
Speaking before the Consumer Federation of America Thursday, Frank said

Congress would pass a regulatory overhaul comparable to the antitrust laws of
the late 19th century and the creation of the Securities and Exchange Commission
in 1934.
 
Democrats will tighten consumer protections for credit cards, put "very tough

rules in" to govern subprime lending and give "appropriate liability" to the
institutions that securitize mortgage loans, he said.
 
Frank said the economic crisis has run counter to the philosophy first

espoused by President Ronald Reagan that "government is part of the problem." He
said the goal would be to diminish excessive risk-taking within the context of
investor and consumer protections.
 
"This has not become an anti-capitalist society," Frank said. "I think we can

make the argument, as the New Deal did, that in fact we are being very
pro-market."
 
Frank said that securitization - used to repackage mortgage loans and sell

them to investors as bonds - has "good aspects" when done right but can also
lead to abuses.
 
Frank predicted that legislation to tighten consumer protections in the credit

card market and to crack down on mortgage lending abuses would become law. He
also said bank regulators would adopt a code of unfair and deceptive practices.

No mention from Frank of the constant work he did over the last 10 years to prevent many similar such regulations from being imposed on Fannie and Freddie.

Posted on December 4, 2008 at 09:27 PM | Permalink

Comments

I’m quite sure that Torquemada will know exactly how to fix the problem he caused.

Posted by: Mesa Econoguy | Dec 4, 2008 10:20:50 PM

Now that republicans are safely out of power, I want every single thing that the dems promised to pass. I want to see a cap on oil profits, 30 cents a gallon is too much, and listen to the local libs complain about prices. I want to see 401k's nationalized to save Social Insecurity and benefits massively reduced for future retirees. I want to see the fairness doctrine only applied to radio, while they trumpet free speech in Bezerkly. I want to see cap and trade passed and watch utility prices spike. I want to see my dentist, who loves Obama, get nailed with massive taxes. But then again, Oregon is so hostile to business, I don't think he'd notice. I want to see Obama negotiate blindly with terrorists and rogue nations because we all know from kindergarten that bullies respond well to talking while their victims dangle by their underwear from a flagpole. I want to see the firewall put back between the FBI and CIA because just knowing a terrorist is in the US is an invasion of privacy. I want to see the NSA banned from tapping foreign calls that get rerouted through US switches because hearing Osama talk to his buds in Pakistan would make him insecure in his cave. I want to see widespread anonymous CIA pen register taps made illegal because seeing one number light-up all the members of a terrorist cell is just too easy. I want to see Guantanamo Bay closed because terrorists while brave enough to fly into buildings, holding unarmed civilians hostage, are not tough enough to endure SERE training. Obviously, I don't really want it to happen, but just enough passed to wake-up the electorate and reinvigorate the republican brand with some fiscal sense.

Posted by: Ian Random | Dec 5, 2008 2:40:04 AM

Can somebody just tell me when Texas or the South is going to try and leave the USA and so i can move there and laugh at those who think Barney Frank really does believe in capitalism and free markets, etc.

Posted by: roger o. | Dec 5, 2008 1:44:18 PM

Maybe Naomi Klein's next book should be called "Disaster Statism".

Instead of portraying Milton Friedman as the villain, she can implicate Barney Frank.

Posted by: Mike | Dec 5, 2008 11:52:51 PM

Tighten up consumer protection on credit cards? It's an unsecured loan. Why should anyone be willing to loan you money, let alone one that doesn't have any tangible assets securing it?

Posted by: Allen | Dec 7, 2008 12:43:28 PM

Mr. Frank specialize in saying the worst things at the worst of times. I don't get it....

P.S. This was definitely titled appropriately.

Cheers.

Ethan

Posted by: Ethan Bloch | Dec 10, 2008 5:32:27 PM

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