Sufferin' Succotash! Barney Frank Present When His Boyfriend's Home Raided For Growing Pot! Frank In Denial (Video)

"I didn't inhale"? Right.

After a confession on Friday by openly gay Representative Barney Frank, many are wondering today if the Congressman is a pot head.

Evidently, when Frank's boyfriend James Ready got arrested in his home on marijuana charges, Frank was there.

MyFoxBoston is reporting that Ready was charged with marijuana possession, cultivation and use of drug paraphernalia. He pleaded guilty to civil possession and paid a fine. The rest of the charges were dropped last year.

Frank Federal introduced medical marijuana legislation this past July.

He has lobbied for decriminalization of the drug in his home state of Massachusetts.

He also encouraged Denver Police not to prosecute pot smokers during last years Democratic National Convention in Denver.

Barney Frank's Cell Phone Goes Off During Interview! (Video)

An embarrassing moment for Sen. Barney Frank's cell phone rings during an interview with MSNBC's Andrea Mitchell.

What a stupid ring tone! The Idiot doesn't know where the silence button is?

Barney Frank: 'Death Panels' for Large Financial Institutions (Video)

Rep. Barney Frank says new rules to dismantle large financial institutions would give Washington the power to prevent future government bailouts.

Federal Government Was Culprit in Housing and Economic Crisis, Says Congressional Report

CNS News reports:

Fannie Mae and Freddie Mac were the chief culprits in the housing crisis because they encouraged people who could not afford payments to borrow money, according to a congressional report released Tuesday.

The claims in the report have long been advanced by conservatives, who argue that the Community Reinvestment Act and other federal programs fed the housing bubble that burst in 2007 and led to the economic downfall in 2008.

But the report explains in detail how Fannie and Freddie -- government sponsored enterprises (GSE) that were not subject to the same oversight as other publicly traded firms -- “privatized their profits but socialized their risks.”

“In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate,” says the report, the result of an investigation launched last fall by Republican members of the House Oversight and Government Reform Committee.

“However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy,” says the report. “While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention.”

The report talks about the Clinton administration’s National Homeownership Strategy, citing President Clinton’s directive to “lift America’s homeownership rate to an all-time high by the end of the century.”

The Clinton strategy further said that Freddie and Fannie should reduce down-payment requirements and, according to the report, “called for increased use of ‘flexible underwriting criteria,’ which it said could be achieved in concert with ‘liberalized affordable housing underwriting criteria.’”

“That is the perfect smoking gun that tells how Barney Frank [D-Mass.], the Clinton administration and others would do it in those days,” Rep. Darrell Issa (R-Calif.), the ranking member on the House Oversight and Government Affairs Committee, said Tuesday in a speech at the Heritage Foundation.

“The seeds of the meltdown began with the well-intentioned goal that everyone have a home even if they can’t afford it,” he said. “It led to one of the biggest ponzi schemes ever.”

Read the full report here.

U.S. House of Representatives
Committee on Oversight and Government Reform
Darrell Issa (CA-49), Ranking Member

The Role of Government Affordable Housing Policy in
Creating the Global Financial Crisis of 2008

The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention created a nexus of vested interests – politicians, lenders and lobbyists – who profited from the “affordable” housing market and acted to kill reforms. In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention.

Senator Lamar Alexander Slams Auto Bailout, Gives "Car Czar Award" to Rep. Barney Frank (Video)

U.S. Senator Lamar Alexander (R-Tenn.), chairman of the Senate Republican Conference, today on the Senate floor issued the first car czar award to Rep. Barney Frank (D-Mass.) for interfering in the operation of General Motors. Alexander also announced a new email address -- CarAward@Alexander.Senate.gov -- by which Americans can send him their nominee for the next award.



The Wall Street Journal:

The latest self-appointed car czar is Massachusetts's own Barney Frank, who intervened this week to save a GM distribution center in Norton, Mass. The warehouse, which employs some 90 people, was slated for closure by the end of the year under GM's restructuring plan. But Mr. Frank put in a call to GM CEO Fritz Henderson and secured a new lease on life for the facility.

Mr. Frank's spokesman, Harry Gural, says the Congressman discussed, among other things, "the facility's value to GM." We'd have thought that would be something that GM might have considered when it decided to close the Norton center, but then a call from one of the most powerful Members of Congress can certainly cause a ward of the state to reconsider what qualifies as "value." A CEO who refuses the offer can soon find himself testifying under oath before Congress, or answering questions from the Government Accountability Office about his expense account. To that point, Mr. Henderson spent Wednesday with Chrysler President Jim Press being castigated by the Senate Commerce Committee for their plans to close 3,400 car dealerships. Every Senator wants dealerships closed in someone else's state.

As Mr. Gural put it, Mr. Frank was "just doing what any other Congressman would do" in looking out for the interests of his constituents. And that's the problem with industrial policy and government control of American business. In Washington, every Member of Congress now thinks he's a czar who can call ol' Fritz and tell him how to make cars.

Michele Bachmann Vs. Barney Frank: ACORN Funding Showdown! (Video)

Rep. Michele Bachmann and Financial Services Chairman Barney Frank face off on ACORN with CNN's Lou Dobbs. The question is, why should the federal government and the American taxpayer be funding supposedly non-profits groups like ACORN to the tune of billions of dollars? ACORN has been indicted and its employees convicted time and time again, yet the taxpayer continues to fund their fraudulent behavior.

Harvard Law Student Who Schooled Barney Frank Interviewed By Neil Cavuto Today (Video)

Joel Pollack discusses his recent encounter with Barney Frank and how he handled Frank's "home crowd".

He notes Frank blames conservative politicians and refuses to accept any level of responsibility.

This kid is fantastic; I can't wait for him to run for office!

Cavuto summarizes: "Well said, Joel. You said it better than politicians."

Harvard Law Student Tells Greta van Susteren about His Barney Frank Showdown (Video)

The student who took down beleaguered House Financial Services Committee chairman Barney Frank (D-MA) during a Frank address at Harvard speaks On the Record with Greta van Susteren.

Harvard Student Takes on Barney Frank Over His Role In The Economic Melt-Down (Video)

It all started with a question: "How much responsibility, if any, do you have for the financial crisis?"

Rep. Barney Frank (D-MA) and a conservative Harvard law student debated over how Frank should have handled his role as the House Chairman of the Financial Services Committee. Frank was at Harvard University for a speech at the Kennedy School of Government.

Frank said the student wasn't backing up his claims, invoking some laughter from the crowd, and the student told Frank he wasn't answering his question.

This student was absolutely incredible! "You're a public representative, I'm a student... it does allow me to ask you a question. I'm waiting for an answer."

Frank acts like a deranged lunatic while this student was intelligent, calm and rational.

Frank adds there is a "systematic right-wing attack to try and divert the blame." It amazes me how Frank continues to act like a child, knowing full-well that he shares a substantial amount of the blame for sub-prime mortgages which contributed to the current recession.



Here are some more facts about President warnings and attempts to avoid the housing collapse caused, in large part, by Freddie and Fannie.
President Bush's efforts over the years, not once, but several from The White House:

2001 April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

2002 May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003 September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements. 2004 February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)

2005 April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

2007 August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)

2008 February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further. "Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08) "[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08) "Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing. And just where was The Messiah during all of this?

From The Wall Street Journal

Finally, on the matter of deregulation and the financial crisis, Sen. Obama should consider his own complicity in the failure of Congress to adopt legislation that might have prevented the subprime meltdown.

In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities. All the Republicans voted for the bill in committee; all the Democrats voted against it. To get the bill to a vote in the Senate, a few Democratic votes were necessary to limit debate. This was a time for the leadership Sen. Obama says he can offer, but neither he nor any other Democrat stepped forward.

Instead, by his own account, Mr. Obama wrote a letter to the Treasury Secretary, allegedly putting himself on record that subprime loans were dangerous and had to be dealt with. This is revealing; if true, it indicates Sen. Obama knew there was a problem with subprime lending -- but was unwilling to confront his own party by pressing for legislation to control it. As a demonstration of character and leadership capacity, it bears a strong resemblance to something else in Sen. Obama's past: voting present.

Heritage reminds us that Obama was involved in defeating reform for Fannie.

In 2004, after a tip from a whistle blower who was later fired, the Office of Federal Housing Enterprise Oversight (Ofheo) issued a report finding that the government-sponsored entity Fannie Mae had engaged in Enron-like accounting machinations that allowed Fannie to overstate its earnings and underestimate the risk the company faced. The accounting wizardry Fannie engaged in was designed so that Fannie could meet profit targets to maximize bonus payments to company executives like Clinton administration deputy attorney general Jamie Gorelick and Carter administration assistant director for domestic policy Franklin Raines.

For years, conservatives have been critical of how Fannie, and Freddie Mac, have leveraged their government-sponsored advantages (including exemptions from state and federal taxes, lower capital requirements, and the ability to borrow at rates well below those paid by private companies), to create a co-monopoly in the housing finance sector. When Fannie’s accounting scandal came to light in 2004, conservatives pushed hard for reforms to phase out Fannie and Freddie. Led by former Walter Mondale and Barack Obama campaign adviser James Johnson, Fannie and Freddie pushed back hard, raising millions of dollars for members of the relevant oversight committees and opening up “Partnership Offices” that funneled money into various housing projects in districts of key members of Congress.

Fannie also bought off activist groups such as the corrupt Association of Community Organizations for Reform Now (ACORN), which has been indicted, multiple times across the country, for vote fraud (Obama worked closely with ACORN as a street organizer in Chicago). Fannie’s lobbying efforts paid off as liberal politicians such as Sen. Chuck Schumer (D-N.Y.) and Rep. William Clay (D-Mo.) worked to kill any real reform of Freddie and Fannie. The Washington Post reports: “In an internal memo in 2004, Fannie Mae executive Daniel H. Mudd affirmed what the company’s critics had long contended: In the political arena, ‘we always won’ and ‘we took no prisoners.’”

Fannie was created during the New Deal to make homes more affordable for lower- and middle-income Americans. Freddie was added years later for the same purpose. Fannie and Freddie have long outlived their purpose as the market for repackaging loans as securities is now well developed. When the housing market is booming, they are not needed, and they have both gone well beyond their original mission and are now backing loans for wealthy (witness Speaker Nancy Pelosi’s continued efforts to raise the cap on the size of the loans that Fannie and Freddie can buy).

Many parts of the bill the Senate passed last week only continue the worst aspects of the crony capitalism at the hard of Freddie’s success. This is especially true of the Community Development Block Grant funds that have long been a goal of partisan housing activist groups like ACORN. There is an opportunity here to use the recapitalization the White House is now proposing to re-organize housing finance by breaking up Fannie and Freddie and creating several smaller truly private entities that can compete.

VIDEO: Glenn Beck Observes Barney Franks 69th Birthday!

Sufferin Succotash! Happy Birthday, Mr. Banking Chair!

Uh...huh...huh... hey, Beavis... he said "Barney Frank and 69"... uh huh huh...

VIDEO: Barney Frank Discusses 'That Homophobe Antonin Scalia' To '365 Gay'

Speaks for itself.

VIDEO: AIG CEO to Barney Frank's Subpoena Threat: "I'm Concerned For The Safety Of My Employees"

AIG CEO Edward Liddy appeared on Capitol Hill today to answer questions over the AIG bonus saga.

Wepwethsentative Bawney Fwank demands the names of AIG employees who received bonuses and says he will subpoena the names if necessary.

In light of recent threats towards AIG employees, Mr. Liddy worries about the safety of his employees.

VIDEO: Chris Wallace Mocks Barney Frank Again!

I get the feeling Chris Wallace doesn't care for Barney. Yesterday, Fox aired a promo for today's "Fox News Sunday" which labelled Barney as "Wep. Barney Frank" instead of "Rep."

Today, Wepwesentative Bawney Fwank tries to argue with Sen. Bob Corker and Wallace gets another shot it on Frank.

(For the record, I do not agree with whomever posted this on You Tube; I think Frank received the smacking from Wallace.)



Sen. Bob Corker implied that Democrats were considering a new stimulus package this morning on Fox News Sunday.

At 1:23 mark:
"Still the major issue in our country is credit and its very difficult for me to believe were considering talking about another so-called stimulus package when, in fact, we still have not dealt seriously with the credit issue. That is absolutely incredible to me," said Corker.

Barney Frank, responded at 4:00 mark (after Moody's Economist Mark Zandi)
"Chris, Chris, excuse me, but can I respond to Bob Corkers partisan attack in the name of partisanship? Because the fact is nobody in the administration or on our side in Congress is focusing on the second stimulus. We only answered that when asked about it."

Chris Wallace seemed reluctant to let Frank rebut the charges.
"Congressman, can we turn to the — I know you like to talk substance," said Wallace.

Frank responds "Well, Chris, dont let political attacks go,"

"If you'd rather get into a food fight, Congressmen Frank, go ahead," said Wallace, "You wanna talk about the budget or you want to get into a food fight?"

VIDEO:Fox News Mocking Barney Frank? Why Did They Call Him "Wep." Instead of "Rep."?

In a promo for tomorrow's "Fox News Sunday", a screen shot of the scheduled guests referred to Barney as "Wep. Barney Frank".

Who thinks this was intentional? (Obviously whoever posted this on You Tube thinks it's a "smear"!)

Wep. Barney Frank... what's a "Wep."

Wepwesenative? Are they mocking Barney's ridiculous speech impediment?

This is a pretty funny typo; even funnier if Fox did it on purpose!

Bailout Bank Throws Lavish Holywood Party; President Obama Has Shady Connections With Northern Trust

TMZ reported:

A bank that received $1.6 billion in bailout money just spent a fortune last week in L.A. hosting a series of lavish parties and concerts with famous singers.

Northern Trust, a Chicago-based bank, sponsored the Northern Trust Open at the Riviera Country Club in L.A. We're told Northern Trust paid millions to sponsor the PGA event which ended Sunday, but what happened off the golf course is even more shocking.

Northern Trust flew hundreds of clients and employees to L.A. and put many of them up at some of the fanciest and priciest hotels in the city. We're told more than a hundred people were put up at the Beverly Wilshire in Bev Hills, and another hundred stayed at the Loews Santa Monica Beach Hotel. Still more stayed at the Ritz Carlton in Marina Del Rey and others at Casa Del Mar in Santa Monica.

Wednesday, Northern Trust hosted a fancy dinner at the Ritz followed by a performance by the group Chicago. - Thursday, Northern Trust rented a private hangar at the Santa Monica Airport for dinner, followed by a performance by Earth, Wind & Fire.

Saturday, Northern Trust had the entire House of Blues in West Hollywood shut down for its private party. We got the menu -- guests dined on seared salmon and petite Angus filet. Dinner was followed by a performance by none other than Sheryl Crow.

There was also a fabulous cocktail party at the Loews. And how's this for a nice touch: Female guests at the Chicago concert all got trinkets from ... TIFFANY AND CO.

If this is supposed to be stimulus, what about the former employees?

NBC-LA reports:

If all that makes your blood boil, imagine how the 450 workers who were laid off in December feel. With 4 percent of its workforce now out of work, the bank wouldn't give a bottom-line total for the LA golf junket, but in a written statement it confirmed that it had "participated in" the federal bailout as "a healthy bank."

Let's not forget President Obama's altogether shady connections to Northern Trust. Surprisingly, Bill Ayers, Tony Rezko and Rev. Wright are involved!

However, in another revelation by pseudononymous writer Richard Henry Lee, posted July 7, 2008, at American Thinker, we learn that it may have been through Obama’s relationship with domestic terrorist and long-term Obama acquaintance, Weather Underground leader William Ayers that Obama first made the connection:

Barack Obama served on the board of directors of Woods Fund of Chicago from 1993 to 2001. During that time, the tax exempt foundation made some interesting grants, including one to Obama’s church, Trinity United Church of Christ, headed by Rev. Jeremiah Wright at the time. Grants were also made to ACORN, a left wing voter registration group and to a partnership for constructing low income housing. The fund also used Northern Trust for financial services, which is the same company that provided Obama his 2005 mortgage.

Anybody think Obama can be trusted?

Sen. Chris "The Snake" Dodd Sneaks Executive Pay Cap Into "Stimulus" At Last Minute

Yet another example of Under Cover of Darkness political meandering. Sneaky, Senator, very sneaky.

(Hat Tip: Jammie Wearing Fool)

From LATimes Blog:
Late fix in stimulus bill imposes tighter limits on bank pay

The economic stimulus bill passed by the Senate on Friday includes curbs on executive pay that go well beyond what Wall Street had been expecting. Sen. Christopher Dodd (D-Conn.), the chairman of the Senate Banking Committee, slipped the provisions into the bill late in the process. The entire stimulus package now heads to President Obama for his signature.

From the Washington Post:

The bill limits bonuses for executives at all financial institutions receiving government funds to no more than a third of their annual compensation.

The bonuses must be paid in company stock that can be redeemed only when the government investment has been repaid.

Unlike compensation rules the White House had previously issued for executives of companies getting additional government capital, Dodd made his measure retroactive, the Post said:

The limits in the stimulus bill would apply to top executives and the highest-paid employees at all 359 banks that have already received government aid.

"This is a big deal. This is a problem," said Scott Talbott, chief lobbyist for the nation's largest financial services firms. "It undermines the current incentive structure."

It's also retroactive.

WASHINGTON -- The giant stimulus package that cleared Congress Friday includes a last-minute addition that restricts bonuses for top earners at firms receiving federal cash -- including those that already received it -- more severely than the Obama administration's previous pay limits.

The most stringent pay restriction bars any company receiving funds from paying top earners bonuses equal to more than one-third of their total annual compensation. That could severely crimp pay packages at big banks, where top officials commonly get relatively modest salaries but often huge bonuses.

Chris Dodd and Barney Frank, who are as responsible as anyone for the current economic mess, continue to successfully use class warfare to push their Radical Socialist agenda.





Sadly, these two morons will never accept responsibility for their failures.

As a final slap in the face, this move will reduce tax revenue to the government by as much as $11 Billion!

Turns out there is a problem with limiting the pay of highly compensated bankers: the Wall Street high flyers pay taxes, too.

Imagine this: Capping top bank executives at $400,000 a year, as the Senate version of the $800-plus billion economic stimulus had called for, would have cost the government $11 billion in lost tax revenue by 2019. That's more than $1 billion a year, according to an estimate this week by the Congressional Budget Office.

Who Is Really To Blame For The Economic Crisis? Bush Warned Congress Many Times of Impending Economic Crisis. Government is Not the Answer!

President Bush tried to warn Congress repeatedly about a pending economic crisis but the Liberal media spun the whole thing out of context.

Read Bush's Warnings... then watch this 2004 video from Congressional Hearing on Freddie and Fannie




Karl Rove's Wall Street Journal Op/Ed President Bush Tried to Rein In Fan and Fred

Mythmaking is in full swing as the Bush administration prepares to leave town. Among the more prominent is the assertion that the housing meltdown resulted from unbridled capitalism under a president opposed to all regulation.

Like most myths, this is entertaining but fictional. In reality, Fannie Mae and Freddie Mac were among the principal culprits of the housing crisis, and Mr. Bush wanted to rein them in before things got out of hand.

Rather than a failure of capitalism, the housing meltdown shows what's likely to happen when government grants special privileges to favored private entities that facilitate bad actors and lousy practices.

Fannie and Freddie are "government-sponsored enterprises" (GSEs), chartered by Congress. As such, they had an implicit promise of taxpayer backing and could borrow money at rates well below competitors.

Because of this, the Bush administration warned in the budget it issued in April 2001 that Fannie and Freddie were too large and overleveraged. Their failure "could cause strong repercussions in financial markets, affecting federally insured entities and economic activity" well beyond housing.

Mr. Bush wanted to limit systemic risk by raising the GSEs' capital requirements, compelling preapproval of new activities, and limiting the size of their portfolios. Why should government regulate banks, credit unions and savings and loans, but not GSEs? Mr. Bush wanted the GSEs to be treated just like their private-sector competitors.

But the GSEs fought back. They didn't want to see the Bush reforms enacted, because that would level the playing field for their competitors.

Congress finally did pass the Bush reforms, but in 2008, after Fannie and Freddie collapsed.

The largely unreported story is that to fend off regulation, the GSEs engaged in a lobbying frenzy. They hired high-profile Democrats and Republicans and spent $170 million on lobbying over the past decade. They also constructed an elaborate network of state and local lobbyists to pressure members of Congress.

When Republican Richard Shelby of Alabama, then chairman of the Senate Banking Committee, pushed for comprehensive GSE reform in 2005, Democrat Sen. Chris Dodd of Connecticut successfully threatened a filibuster. Later, after Fannie and Freddie collapsed, Mr. Dodd asked, "Why weren't we doing more?" He then voted for the Bush reforms that he once called "ill-advised."

But Mr. Dodd wasn't the only Democrat to heap abuse on the Bush reforms. Rep. Barney Frank of Massachusetts defended Fannie and Freddie as "fundamentally sound" and labeled the president's proposals as "inane." He later voted for the reforms. Sen. Charles Schumer of New York dismissed Mr. Bush's "safety and soundness concerns" as "a straw man." "If it ain't broke, don't fix it," was the helpful advice of both Sen. Thomas Carper of Delaware and Rep. Maxine Waters of California. Rep. Gregory Meeks of New York berated a Bush official at a hearing, saying, "I am just pissed off" at the administration for raising the issue.

Democrats had ready allies among lenders accustomed to GSEs buying their risky mortgages. For example, Angelo Mozilo, CEO of Countrywide Financial, complained that "an overly cumbersome regulatory process" would "reduce, or even eliminate, the incentives for the GSEs and their primary market partners."

It took Fannie and Freddie over three decades to acquire $2 trillion in mortgages and mortgage-backed securities. Together, they held $2.1 trillion in 2000. By 2005, the two GSEs held $4 trillion, up 92% in just five years. By 2008, they'd grown another 24%, to nearly $5 trillion. They held almost half of all American mortgages.

The more the president pushed for reform, the more they bought. Peter Wallison of the American Enterprise Institute and Charles Calomiris of the Columbia Business School suggest $1 trillion of this debt was subprime and "liar loans," almost all bought between 2005 and 2007.

This bulk-up in risky paper made it possible for banks to lend imprudently on a massive scale.

Some critics blame Mr. Bush because he supported broadening homeownership. But Mr. Bush's goal was for people to own homes they could afford, not ones made accessible by reckless lenders who off loaded their risk to GSEs.

The housing meltdown is largely a story of greed and irresponsibility made possible by government privilege. If Democrats had granted the Bush administration the regulatory powers it sought, the housing crisis wouldn't be nearly as severe and the economy as a whole would be better off.

That's why some mythmakers are so intent on denying that Mr. Bush worked to rein in the GSEs. But facts are stubborn things, as Ronald Reagan used to say, and in this instance, the facts support Mr. Bush and offer a harsh judgment on key Democrats. Perhaps that explains why so many in the media haven't told the real story.

We Post. You Decide.

Barney Frank Not Pleased With Obama's Choice of Rick Warren

Townhall.com reports that Rep Barney "Bailout" Frank is unhappy with Barack Obama's decision to invite Pastor Rick Warren to next month's inauguration.

Openly gay Frank said on CNN's "Late Edition":

"Mr. Warren compared same-sex couples to incest. I found that deeply offensive and unfair. If he was inviting the Rev. Warren to participate in a forum and to make a speech, that would be a good thing. But being singled out to give the prayer at the inauguration is a high honor. It has traditionally given as a mark of great respect. And, yes, I think it was wrong to single him out for this mark of respect."

Is anyone surprised? Certainly Rep. Frank is entitled to an opinion like every American, but we have already saluted Obama's commitment to his campaign rhetoric of bringing all sides together.

Certainly, as a congressman Frank should understand that concept of compromise mentality, right?

Oh that's right, he's a radical liberal! He only cares about his own agenda!

Check out Politico for more on Gay Leaders upset with Warren selection.

Auto Bailout/Barney Frank Need His Oil Changed

Among the many issues and people involved in the financial crisis, the proposed auto-industry bailout and the economic stimulus, one man stands alone in his immature, irrational and radical beliefs.

Dear old friend, Rep Barney Frank challenged President-Elect Obama to become more inolved, despite inauguration day still over a month away.

"He's (President-Elect Obama) going to have to be more assertive than he's been," Frank said at a Consumer Federation of America conference in Washington. "At a time of great crisis with mortgage foreclosures and autos, he says we only have one president at a time. I'm afraid that overstates the number of presidents we have. He's got to remedy that situation."

Mr. Frank is passing the buck of responsibility onto President Bush. Let's not forget that as chairman of the House Financial Services Committee, it was Mr. Frank who played a major hand in our financial mess by enabling Fannie Mae and Freddie Mac to allow people to purchase homes they cannot afford. (See a September Boston Globe column for a great description of this.)

It's unprofessional and demonstrates Mr. Frank does not know his steering wheel from his tailpipe. We would have much more respect for Mr. Frank if he and his liberal colleagues would take responsibility for SOMETHING, ANYTHING and STOP BLAMING GEORGE BUSH FOR EVERYTHING!

It's a two-way street; Congress and the White House work together and we are FED UP with these people's inability to accept responsibility for their own failures.

If our government cannot admit to its mistakes, how can we expect our business leaders to do the same?

E-Mail Barney Frank!