The staggering ignorance exhibited by the folks that are intimately involved with the outcome of this financial calamity was further demonstrated by Barney Frank (D) MA.
I am not a mortgage broker (I am a mortgage banker) and the statement Mr. Frank made is outrageous and baffling considering we have had two years of hearings teaching him what it was he was to have been overseeing as Chair of the committee that was to oversee all of this. Alas he still does not understand the market place and how it works.
Mr. Frank was attending a meeting and in that meeting Timothy Geitner Treasury Secretary stated "regulatory overhaul without limiting consumer choice of financial products or stifling competition" was the focus. Barney Frank the Banking Chair seems to be at odds with Mr. Geitner because in that same meeting Mr. Frank stated he wants a death panel for mortgage brokers or "a mechanism for putting non-banking financial institutions out of everyone's misery" in other words Mr. Frank enjoys and wishes to maintain his lifestyle the banking lobby has provided for him.
Mr. Frank it seems wants to limit a consumer option which is consistent with the mindless logic he puts forth when he expresses his vision on heath care and unfortunately he is not alone. (Insurance industry is the 2nd largest lobby group).
My point is it is very disappointing. I am not an ideologue and don't carry the water for any party because they all have messed this up and the chickens have come home to roost. We have no meaningful leadership to guide our country through the calamity Wall Street carelessly dumped in our lap.
This never would have happened but for a bill signing in December of 1999 with the support of Barney Frank and Friends eliminating good old fashioned risk analysis underwriting in exchange for wild wild west. Unregulated areas of Wall Street, the triple A ratings that were never really measured, the lack of oversight on lending standards, builders owning their own mortgage companies ....the list goes on.
The banking lobby is the strongest in our country and the above demonstrates it continues to have a stranglehold on congress which inevitably means the banking world will have a strangle hold on the consumer. If you have any doubt just look at the rate on your credit card and remember the cost of money for banks is near zero.
Welcome to the Republic of Wall Street.
I wish us all well.
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