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Frank's Message to the 'Elites': First Fix the Social Safety Net
We interviewed House Financial Services Committee Chairman Barney Frank (D-MA) this morning for TPMtv. It was a far-reaching conversation that covered a lot of ground, from the legal rights of mortgage holders to the return on the government's TARP investment, and we'll be posting a full transcript by tomorrow.
But one of Frank's answers stuck with me more than all the rest. I asked about Paul Krugman's concern -- echoed by Josh yesterday -- that "fair value" accounting would be used to artificially inflate the value of toxic assets that remain on the books of struggling banks. And Frank spoke directly to the social and economic divide that's plaguing the country right now.
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Josh
Matt
Eric
Brian
my message to frank: button your shirt!
January 19, 2009 2:59 PM | Reply | Permalink
Massachusetts' 4th district is behind Barney all the way!
January 19, 2009 4:08 PM | Reply | Permalink
It is all well and good that Frank wants to fix the social safety net - but bailout #2 is bad policy, and especially the idea of buying worthless bonds at "fair" value.
Fixing the banks requires accepting the drop in value from the bubble prices - that will not be avoided. The remaining question is whether or not the "elites" get paid off with public money.
January 19, 2009 4:22 PM | Reply | Permalink
Barney has become a total fucking sellout just like other mainstream Dems. So sad. I remember when I liked him.
Theda Skocpol's take, quoted on the front page of TPM, is right on target.
January 19, 2009 5:37 PM | Reply | Permalink
I live in Massachusetts and have known Barney since he arrived in DC---I can't believe the way he has changed. His district isn't going to tolerate handing $ over to corporations and banks that are failing.
I am sick of this "socialization" of banking and insurance--let them fail--they took terrible risks, let them pay the consequences--their investors have already been hurt and will never see five cents on the dollar.
January 19, 2009 10:12 PM | Reply | Permalink