An associate for the economic crisis Inquiry Commission reacts to your meeting with Barney Frank, arguing that minus the federal federal government’s intervention, there is no housing crisis
On December 9, The Atlantic published online an meeting with Congressman Barney Frank. With it, he called me a “real extremist. ” This name-calling had not been just false but additionally improper to your severity of this problem — that will be whether federal government housing policy, and never the banking institutions or perhaps the personal sector, caused the 2008 crisis that is financial. I made the decision to answer both Congressman Frank’s statements therefore the concerns he had been expected about federal government housing policy additionally the financial meltdown.
We are hearing Republicans into the presidential blame that is primary housing crisis in the Clinton-era push to provide more to the indegent. In your view, just exactly what caused the home loan crisis and later the crash that is financial?
Congressman Frank, needless to say, blamed the crisis that is financial the failure acceptably to modify the banking institutions. In this, he could be following the old-fashioned Washington training of blaming others for his or her own errors. For many of their profession, Barney Frank had been the key advocate in Congress for making use of the federal government’s authority to make reduced underwriting requirements into the company of housing finance. Although he claims to possess attempted to reverse course as soon as 2003, that has been the season he made the oft-quoted remark, “I would like to move the dice a bit more in this example toward subsidized housing. ” as opposed to reversing program, he had been pressing on whenever others had been starting to have doubts. Continue Reading