Dodd and Frank are mostly to blame

Dick Prosence, Meeker

Published January 16, 2009 at 12:05 a.m.

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January 16, 2009

5:46 a.m.

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DakotaPlainsman writes:

Dodd and Frank are going to be a test of the new President's philosophy of "CHANGE". If they continue to call the shots in the finance and housing field, we'll know what the President is capable of doing. In the past, he has not been known for bucking the system or standing up to stiff resistance. He is being tested by his own party. I hope he passes the test.
January 16, 2009

6:05 a.m.

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LetsThink writes:

Will the Democrats admit the fault of Dodd and Frank in causing this financial disastor?

In the same way that they have blamed President Bush for all the wrongs in America?

Or will there continue to be two standards? Why??
January 16, 2009

6:22 a.m.

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grandpaw writes:

You best not mess with Dodd and Frank. They are the two most powerful men the world has ever seen. They singlehandedly brought the world to its financial knees. I fear for the safety of the letter writer, Dakota and Let's Think for crossing them. Now back to the adult world.
January 16, 2009

6:57 a.m.

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LetsThink writes:

Did grandpaw answer the concern? Or dodge it?
January 16, 2009

7 a.m.

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NavyChief writes:

Don't forget Henry Cisernos. He was the Head of HUD under Clinton and it was under his guideance that the "creative mortgage lending" policy was approved, signed and implemented. While he was at HUD, and a Clinton appointee, he was also on the payroll of Fannie Mae and Countrywide as a consultant. Can anyone say CONFILCT OF INTEREST???? After he left the Federal Government for sex offenses, he was placed on the Board of Directors for both the aforementioned companies and then developed his own personal slum in Texas, with the mortgages held by none other than Countrywide and Fannie Mae.

And let's not forget that in addition to being the chairman of the Committee on Financial Services, Barney Frank was also involved in a homosexual relationship with the CEO of Fannie Mae at the same time all these "creative mortagage" lending policies went into effect. CAN YOU SAY CONFLICT OF INTEREST???

This entire mortagae fiasco has its foundation and beginning in the Clinton Administration. But history will ensure it goes down as being Bush's fault because he didn't realize the seriousness of the situation. And therfore, Slick Willy will get yet another pass on being held responsible for his actions and decisions.
January 16, 2009

7:04 a.m.

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GK writes:

"Did grandpaw answer the concern? Or dodge it?"

LetsThink you are no one to accuse anyone of dodging concerns.
January 16, 2009

7:09 a.m.

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jgd writes:

Grandpaw,

Frank and Dodd accomplished it by being incompetent boobs living in denial, or crooked politicians who were more concerned with getting a Democrat elected to Congress and the Presidency. Either way they sure as hell should not be in charge of trying to clean up the mess they created.

You are correct, they didn't do it singlehandedly, there were other Democrats involved in the bilking the funds of FM&FM for their campaign financing and personal gain.
January 16, 2009

7:39 a.m.

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popo writes:

The Republicans have been blaming everyone except those with the power of oversight ........and regulation.

Their new mantra is "Admit nothing, deny everything."

Trust Republicans?
Never again.
January 16, 2009

8:06 a.m.

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jgd writes:

Popo

Have you seen or read Frank's and Dodd's testimony before Congress defending FM&FM right up until the time they collapsed? If there was ever a classic example of "Admit nothing, deny everything" this had to be it. But then you have no desire to get to the truth of any issue. Even more concerning is you liberals actually feel comfortable having these two in charge of "fixing" the problem.
January 16, 2009

8:36 a.m.

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popo writes:

jgd,
Did you see Ws speech last night?..........'Nuff said.
January 16, 2009

8:41 a.m.

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FRN4U writes:

democrats in the house and senate did not vote on spending
legislation the past eight years, Popo? Seems to me that most
Republicans and Democrats are "the problem." Hope the messiah, democrats, and the republicans can pull rabbits out of the hat during 2009.
January 16, 2009

8:44 a.m.

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FRN4U writes:

people usually "listen" to speech, Popo.
January 16, 2009

8:44 a.m.

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grandpaw writes:

jdg, if Dodd and Franks said something in their testimony that you think supports the criticism of them, how about posting it? Or are you not into the business of supporting your vague opinions with facts? It's a bit like me saying, have you been reading jdg's posts? Doesn't that prove that he has no idea of what he is talking about?
January 16, 2009

8:56 a.m.

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Romulus writes:

So Dodd and Frank are "are almost the sole cause of the mess." Hilarious. The Republicans have been in control of everything for most of the past 8 years. In that time a huge surplus has been converted into a huge deficit, unemployment has skyrocketed, we have almost doubled the national debt, and the economy has been brought to its knees. Who knew Dodd and Frank had that much power? Didn't Republicans used to be the party of "personal responsibility"?
January 16, 2009

9:52 a.m.

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grandpaw writes:

With respect to NavyChief's comments in which he tries to blame the housing crisis on Henry Cisneros:

There is no question in my mind that Cisneros made bad decisions which contributed to easy mortgages for people who could not afford them.

The mistake which NavyChief makes, one that is common to extremists, is his failure to be fair about the housing crisis.

There is an in-depth study of Cisneros at http://www.nytimes.com/2008/10/19/bus... entitled "Building Flawed American Dreams" in which the authors strongly criticize Cisneros. But, unlike NavyChief, the authors also try to be fair. For example, rather than act as though Cisneros acted alone, they acknowledge that the lending industry enthusiastically supported Cisneros' actions easing mortgage restrictions. And they make this rather obvious statement:

"The causes of the housing implosion are many: lax regulation, financial innovation gone awry, excessive debt, raw greed. The players are also varied: bankers, borrowers, developers, politicians and bureaucrats."

And, unlike extremists such as NavyChief, they recognize that the Bush administration not only failed to stem the easy mortgage march but assisted that march:

"But as the boom later gathered steam, and as the Bush administration continued the Clinton administration’s push to amplify homeownership, some of those gains turned out to be built on sand."

The authors note that CountryWide, the largest mortgage lender in the nation, wallowed in the easy mortgage business. While Cisneros was on the Board of Directors, the authors recognize that it was the executives of the company, not the board, that may the decisions which caused the company to implode.

At the core is the fact that lenders flocked to the easy mortgage market like flies to honey. If there is one word to describe the cause, it is "greed". Not one man's greed, but a greed which took possession of the mortgage industry like alcohol takes possession of the alcoholic.
January 16, 2009

11:19 a.m.

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me2 writes:

Oh Goddess grandpaw, pick up your pearls and save them for folks who want to learn.

If only two men could bring down the economy of the entire world, then what good was the Republican President, Senate and House?

This giant collapse will be studied for decades, even today all over the world the economists are not sure exactly what happened but one lone poster in Denver knows.
January 16, 2009

11:48 a.m.

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John_II writes:

http://www.youtube.com/watch?v=hxMInS...
January 16, 2009

12:06 p.m.

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John_II writes:

grandma, can you explain that video? Can you explain the sheer mendacity of Pelosi? Can you explain the ignorance of Frank and Waters? Why is that liberals keep ignoring that damning evidence of Democrat foolishness?
January 16, 2009

12:11 p.m.

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d1234 writes:

How about blaming the one person who is responsible for virtually all of this mess: the idiot who borrowed money they couldn't pay back. Give me a break. Just because someone offers you the money, doesn't mean you should take it. WAKE UP PEOPLE! Stop living beyond your means. If you sign something that you didn't read or understand, tough darts. You signed it, take the responsibility. There are always going to be unscrupulous politicians and business people. Buyer beware!!! If you can't follow the proceedings during a real estate closing, stop and step back. When did we become a nation of babies? Stop it!
January 16, 2009

1:04 p.m.

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anderson writes:

"And let's not forget that in addition to being the chairman of the Committee on Financial Services, Barney Frank was also involved in a homosexual relationship with the CEO of Fannie Mae at the same time all these "creative mortagage" lending policies went into effect. CAN YOU SAY CONFLICT OF INTEREST???"

Does this mean that there would have been no conflict if it had been a heterosexual relationship?

How someone who is smart enough to be a Navy Chief, can offer some obvious bullsh__ he heard on the radio as the truth, and not realize that someone is yanking his Richard, is beyond me.
January 16, 2009

1:07 p.m.

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anderson writes:

An education starts with the realization that there is more than one side or angle to any issue and that reasonable people can disagree.
January 16, 2009

1:08 p.m.

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Jeff writes:

me2:
Great point. From talking to people whom I know in the financial industry, it seems the impetus for this crisis likely will be debated for years to come. I'm suspicious of anyone who presents an explanation that involves partisan politics.

In Paul Krugman's new book, "Return to Depression Economics," he gives a sober look (sometimes too sober) at crisis with minimal partisanship. He shows that arguments being made on both the right and left about the cause of these problems really aren't valid, and that in either case it approaches the problem in a hopelessly simplistic manner.

So, yes, to imply that two people caused all this is mind-blowingly naive. (And probably a bit flattering to those being accused).
January 16, 2009

1:30 p.m.

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anderson writes:

I've always wondered, where does mind-blowing naivete come?

A. Standing outside, hatless, on the eastern plains of Colorado, for an extended length of time?
B. Taking too many drugs?
C. Listening to the radio exclusively?
D. A burning desire to return to your childhood ala Mr. Limpet (I wish, I wish, I wish I were a kid)?
January 16, 2009

1:49 p.m.

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LFC writes:

Someday you Repubs and Democrates will realize that they are both at fault for this mess. After realizing this, you might just see that each of us is also responsible for this mess. Trying to keep up with the Jones, spending our equity, maxing our credit cards. Basically living above our means. Dang that George Bush! Dang that Bill Clinton, Dang the Democratic Party, Dang the Republican party.......how did they trick us into living above our means!
January 16, 2009

1:57 p.m.

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John_II writes:

anderson,

What is with your obsession with talk radio? You seem to mention it on every thread.
January 16, 2009

2:04 p.m.

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John_II writes:

"I've always wondered, where does mind-blowing naivete come?" - anderson

What "mind-blowing naivete" are you referring to?
January 16, 2009

2:12 p.m.

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anderson writes:

If I saw fewer signs of mind-blowing naivete, John, I would probably have far fewer remarks about talk radio. I figure people are not so naturally misinformed or unreasoned or constantly at war with some unseen enemy. Short of some mental illness, it's gotta be a learned behavior, and all the signs point to the propaganda on our airwaves (yours and mine)(I know you must hate that phrase). If you have a better explanation for this phenomenon, including claims that Dodd and Frank (or "the democrats") have single handedly brought down the U.S. and world economies, please let us know.
January 16, 2009

2:14 p.m.

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John_II writes:

"An education starts with the realization that there is more than one side or angle to any issue and that reasonable people can disagree." - anderson

Another vague preachy statement from anderson.

Ok, reasonable people can disagree - now what? Does that mean all disagreements are equal or valid or relevant or cogent or true?

And what is the relevancy of your dictum in the context of the subject of this letter?
January 16, 2009

2:26 p.m.

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popo writes:

4F says we "listen" to speech.
Can you tell us why his speech should be taken seriously in any form?

The man has proven himself to be a sadistic, greedy bastard who has allowed 9/11 to happen on his watch, (Yes, it was on his watch), non-regulated the financial sector to the point we see it today, allowed and even encouraged torture , giving any future American POWs a grim scenario........ and opened himself and his underlings up to charges of war-crimes.

To borrow your friend Rushs' terminology....."You People" are as responsible as he is, for voting his sorry posterior into office in the first place.

May you, or your loved ones be subjected to the same "enhanced interrogation" techniques.

1/20/'09 can't come soon enough.

Oh, and WHERE'S OSAMA?????
January 16, 2009

2:27 p.m.

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anderson writes:

The relevance is this: several posts evidence a single-minded point of view (no two or three ways about it. KISS). The economic crisis is *the* fault of Dodd and Frank, or "The" Democrats, or "The" Republicans, or Bush, or Clinton, or that man walking down the street, or the man in the sky. Real people making real decisions or having real conversations don't talk that way. Or, if they do, everyone knows they are either drunk or an utter fool.
January 16, 2009

2:30 p.m.

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John_II writes:

"I figure people are not so naturally misinformed or unreasoned or constantly at war with some unseen enemy. Short of some mental illness, it's gotta be a learned behavior, and all the signs point to the propaganda on our airwaves" - anderson

When you say "airwaves", do you mean radio or does television fit into that realm as well. The characteristics you describe could easily be blamed on newspapers, television, radio, public schools, MTV or video games. You just happen to choose a medium that is dominated by an ideology that you disagree with.

"If you have a better explanation for this phenomenon, including claims that Dodd and Frank (or "the democrats") have single handedly brought down the U.S. and world economies, please let us know." - anderson

Who said "single handedly"? Grandma did. The author wrote :

"Sen. Chris Dodd, D-Conn., chairman of the Banking, Housing and Urban Affairs Committee, and U.S. Rep. Barney Frank, D-Mass., chairman of the Committee on Financial Services, are almost the sole cause of the mess that has created hardship for millions and will plague our children, grandchildren and future generations for decades."

He said "almost". Meaning, he was using some hyperbole in order to drive home his point. Was the hyperbole a bit over the top? Sure. But that does not mean Dodd and Frank are not culpable for their contributions to the financial crisis. All of the Democrats who opposed Republicans' calls for more regulation are also culpable. And those who created Fannie/Freddie are also culpable.

It seems to me that if you disagree with the author's assertion, you would be much more effective by proving why he is wrong rather than merely saying "talk radio". Otherwise, our discussions might as well be like this:

J2: MSNBC
anderson: Faux News
J2: NY Times
anderson: talk radio
J2: CNN
anderson: Faux News
J2: CBS
anderson: talk radio
J2: NBC
anderson: Faux News
J2: Associated Press
anderson: talk radio
J2: Reuters
anderson: Faux News
January 16, 2009

2:37 p.m.

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John_II writes:

"The economic crisis is *the* fault of Dodd and Frank, or "The" Democrats, or "The" Republicans, or Bush, or Clinton, or that man walking down the street, or the man in the sky." - anderson

You mean that there is no truth to anything but an endless degree of little truths. And we cannot possibly settle on any single truth, even though that truth may be the most relevant truth, since other minor truths also exist.

Perhaps, instead of lecturing everyone, you could offer us your own argument. I noticed that you hardly ever offer your own argument other than telling everyone how useless it is to choose sides.

What is your take on the financial crisis? We all understand that multiple factors contributed to it. But is there any factor which you believe contributed more than any other factor?
January 16, 2009

4:58 p.m.

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primafacie writes:

No one's hands are clean on this mess. Not Democrats, not Republicans, not Wall Street, not "Main Street."

But not to acknowledge that the seeds were planted with the Community Reinvestment Act of 1977, passed by Democrat-controlled Congress at the encouragement of James Earl Carter, amid handwringing over the lack of low-income and racial minorities in home ownership is, at best, dishonest.

To be sure, no one -- Republican or Democrat -- confronted the elephant in the room: people without means taking out mortgages. Everyone has figurative blood on their hands -- Republicans, Democrats, lenders, borrowers, investors, underwriters.

And if Barney Frank and Chris Dodd weren't such self-righteous and joyless gasbags, it wouldn't be so much fun to point the finger at them.
January 16, 2009

5:13 p.m.

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me2 writes:

I want to steal an idea from Einstein that I will reword.

I don't know what kind of economic system the Democrats and Obama will bring about, but if it fails, the next one will be the barter system.

John II, please sit on your hands and ignore me.
January 16, 2009

5:18 p.m.

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E8H52 writes:

Hey Popo,
living any future American POWs a grim scenario........
Can you name any US service member captured by Al Queda that did not have to be identified by DNA or dental records?
The truth is in every war that this country has fought in our soldiers have been starved, maltreated and tortured.
In the real world that most of us live in protecting American lives is not a war crime, even though your rose colored, blinder equipped glasses will never see truth in that.
Yes 9/11 happend eight months after President Bush took office and he had a 15 minute or so briefing that stated ben laden wanted to attack the United States, did you want him to carpet bomb Afganistan on the spot or nuc Pakistan????
Your hero Bill was offered ben laden on a platter by the Sudan three times and he wasn't interested will you hold him accountable, not a chance your hatred will never allow your idol to be besmirched.
So far in your posts I have never seen a point supported by facts or data, just hatred of anything you percieve to be an afront to your biases.
January 16, 2009

5:46 p.m.

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anderson writes:

"But not to acknowledge that the seeds were planted with the Community Reinvestment Act of 1977, passed by Democrat-controlled Congress at the encouragement of James Earl Carter, amid handwringing over the lack of low-income and racial minorities in home ownership is, at best, dishonest."

Evidence? You offer none. Just a conclusion. I think you're highly misinformed. I don't think you know the CRA's history--when it was passed (1977), why it was passed, or what it did, nor can you tie it to securitization of morgages which only developed fairly recently, or to the present spiral downward which is even more recent than that. And you don't. There are some people out there who will sell any race-based argument, no matter how flimsy or idiotic, because they know there are always buyers for a race argument and some will buy it site unseen, argument undeveloped--like some land they bought out of a catalogue.
January 16, 2009

6:11 p.m.

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grandpaw writes:

prima facia: "But not to acknowledge that the seeds were planted with the Community Reinvestment Act of 1977, passed by Democrat-controlled Congress at the encouragement of James Earl Carter, amid handwringing over the lack of low-income and racial minorities in home ownership is, at best, dishonest."

The phrase "seeds were planted" is way too vague to be meaningful.

But if you assume that prima facia is contending that the CRA caused or contributed to the mortgage meltdown, there are many reputable people who disagree. Prima facia's claim that if your opinion differs from his you are dishonest is the mother of self-righteousness.

http://blogs.wsj.com/economics/2008/1...

"December 4, 2008, 1:45 pm
"Don’t Blame CRA (The Sequel)

"A pair of economists from the Federal Reserve Bank of San Francisco added another piece of evidence to the case that the 1977 Community Reinvestment Act wasn’t the cause, or even a major contributor, to the subprime mortgage debacle.

"In a paper focused on California that was presented at a Fed conference on housing and mortgages in Washington, D.C., Elizabeth Laderman and Carolina Reid say the data “should help to quell if not fully lay to rest the arguments that the CRA caused the current subprime lending boom by requiring banks to lend irresponsibly in low and moderate-income lenders.” Fed governor Randall Kroszner made a similar case earlier this week.

http://blogs.wsj.com/economics/2008/1...

" December 3, 2008, 11:18 am
"Fed’s Kroszner: Don’t Blame CRA

"Federal Reserve governor Randall Kroszner, a conservative economist on leave from a teaching post at the University of Chicago Booth Graduate School of Business, says the Community Reinvestment Act isn’t to blame for the subprime mess, despite some accusations to the contrary.
kroszner_blog_20070802131402.jpg
Kroszner

“First, only a small portion of subprime mortgage originations are related to the CRA. Second, CRA- related loans appear to perform comparably to other types of subprime loans. Taken together… we believe that the available evidence runs counter to the contention that the CRA contributed in any substantive way to the current mortgage crisis,” he said in a speech today in Washington."
January 16, 2009

6:13 p.m.

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grandpaw writes:

More about Barney Frank:

"But most important, undermining Boortz's baseless charge are actions Frank has taken over the years to strengthen oversight of Fannie and Freddie. In the early 1990s, when Democrats held the majority in Congress before the Republican takeover in 1995, Frank supported bills to increase regulation of Fannie Mae and create a government regulatory agency that would supervise and have authority over some aspects of the company in 1991 and 1992. Moses was employed by Fannie Mae at that time. Moreover, in 2005, when Frank was the ranking Democrat on the House Financial Services Committee, he worked with committee chairman Rep. Michael Oxley (R-OH) on the Federal Housing Finance Reform Act of 2005, which would have established the Federal Housing Finance Agency (FHFA) to oversee the activities of Fannie Mae and Freddie Mac. After voting for the bill in committee, Frank voted against final passage of the bill on the House floor, stating that he was doing so because an amendment to the bill on the House floor imposed restrictions on the kinds of nonprofit organizations that could receive funding under the bill. In early 2007, as chairman of the House Financial Services Committee, Frank sponsored H.R. 1427, a bill to create the FHFA, granting that agency "general supervisory and regulatory authority over" Fannie Mae and Freddie Mac and directing it to reform the two companies' business practices and regulate their exposure to credit and market risk. The FHFA was eventually created after Congress incorporated provisions that House Speaker Nancy Pelosi (D-CA) said were "similar" to those of H.R. 1427 into the Housing and Economic Recovery Act of 2008, which the president signed into law on July 30."
January 16, 2009

6:48 p.m.

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popo writes:

E8H...whatever
Hey, I'll agree that war is hell, but your leaders chose to ignore the Geneva Convention, as well as our own Constitution by allowing and even ordering prolonged encarceration without representation.....and torture.

Real Americans are supposed to be better than that.

That's why peoples of the world used to respect us.

But your leaders blew that all to hell.

By condoning torture.

President Clinton may have had the time to get BIN-LADEN had you perverts on the right not have been so interested in his sex life to the point of impeachment.

And consensual sex is not a war crime.

But torture is.

And so is killing 100,000 innocent women and children because your boys wanted their oil.

Remember that the original "war" in Iraq was named Opperation Iraqi Liberation, until someone with a brain told them that the accronym spelled OIL.

Your boys are idiots.

And they damn near destroyed our country.
They sure as hell are responsible for 4200+ American troops DEAD.

I believe you owe their families an apology, as they died for Exxon/Mobiles bottom line.

Tha is NOT why civilized Americans go to war.

Except in your little world of Greed, Oppression, and Perversion...oh, and tell Cheney that spells G.O.P.

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Home › Opinion › Letters to the Editor

Dodd and Frank are mostly to blame

Dick Prosence, Meeker

Published January 16, 2009 at 12:05 a.m.

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