Past Performance Predicts Future Reliability

In 2003, President Bush called for a new agency, internal to the Treasury, to oversee Freddie & Fannie. Rep. Barney Frank didn't see a problem:

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

He's right -- Fannie and Fred should provide a lot of affordable, repossessed housing. Way to stick it to the man, Barney!
Hat-tip: Professor Mankiw

110th Congress Posted by John Kranz at August 27, 2008 4:00 PM