Monday, October 06, 2008


My Roth IRA has lost about 25% of its value in the last couple of months, and it's set to lose a bit more in the upcoming week. And who do I think should share a large measure of responsibility in this fiasco? Barney Frank, who it seems had a little* incentive to deregulate Fannie Mae.
Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.
*Maybe sarcasm isn't warranted here. Barney Frank had a huge incentive to fight for Fannie Mae to be deregulated. It's criminal, really.

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