Barney Frank (D-MA) has suggested that his committee may recommend the dissolution of the quasi-private Government Sponsored Entities Fannie Mae and Freddie Mac:
Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee, said Friday he supports replacing the two companies entirely.
“I believe this committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” Frank said at a hearing on executive compensation issues. “That’s the approach, rather than the piecemeal one.”
His comments show how much the financial crisis has upended the relationship between lawmakers and the two companies. Frank was long one of the staunchest supporters of Washington-based Fannie Mae and Freddie Mac, based in McLean, Va.
Eliminating Fannie and Freddie is a great idea! Of course, if a politician’s lips are moving, he’s lying, so we need to be careful of what we wish for.
A whole new system of housing finance will more than likely not be a free market solution, and will probably resemble the ideas being pushed forward for universal health care. Owning a house, like having health care, will be propagandized as a right for everyone, as opposed to a privilege for those who work hard, save and make the right decisions.
Make no mistake; socialist will stop at nothing to gain control of every aspect of the American economy, including but not limited to, banking, mortgage lending, manufacturing, and health care.
Under socialist/communist rule, Eastern European governments in the 1960’s through the late 1980’s had total control of housing, as well. And it was the government bureaucracy that determined what type of home you qualified for, where that home would be and what amenities you would have.
The new system being proposed will probably be rooted in similar Marxist principles.
Abolish Fannie Mae and Freddie Mac? Yes.
Allow a socialist controlled Congress to implement a new system of housing finance? We are leaning towards a resounding no!
It’s obvious that Chairman Frank has no clue what is really going on and how to effectively implement a fair, fiscally sound and free market efficient solution for housing.