Thursday, January 22, 2009

Barney Frank - When Politics and Business Mix

I have been critical of the bailouts from the beginning. It was a sad day to see Republican after Republican (or "conservative" after "conservative") say that the bailout was a bad idea but that 'we could not do nothing.' I would say nothing is better than something that will make things worse, but that's just me.

Today the Wall Street Journal has an article about how Barney Frank 'went to bat' for a local Massachusetts bank. As the article explains, Frank has ties to OneUnited Bank. I quote from the article, "Mr. Frank says that in order to protect OneUnited Bank, he inserted into the billa provision to give special consideration to banks that had less than $1 billion of assets, had been well-capitalized as of June 30, served low-and moderate-income areas, and had taken a capital hit in the federal seizure of Fannie Mae and Freddie Mac."

My favorite part is the quote from Frank immediately afterwards:

"I did feel that it was important to farnkly try and save them since it was federal action that put them into the dumper," Mr. Frank says.

Federal action has caused many negative things, but here is the amazing thing about Mr. Frank's position: He believes that MORE government intervention into the free market is going to fix these problems! Granted, the government is not taking over OneUnited Bank as they did Fannie Mae and Freddie Mac, but sure enough we are intervening more and more into the private market to try to fix intervention in the private market. Huh?

It defies logic, but I have found more and more that actions of government oftentimes defy logic.

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