UPDATE: Frank now says that critisizing Congress is racist…. wow is this guy desperate or what? He says that conservatives are trying to blame blacks getting loans for the mortgage mess. No Barney we are blaming you pinheads in Congress who were getting paid to let this go on when Republicans were trying to fix it and end the corruption.
This video is one of the greatest lessons in how politicians lie and shirk responsibility that I have ever seen. So read carefully because we are going to parse this one.
For those who don’t know, Barney Frank is one of those most responsible for the largest economic scandal in the history of the world; this mortgage crisis. Barney Frank has been a ranking member of the House Finance (banking) Committee, has served in the House since 1981, and is now the chairman of the House Finance Committee.
What you need to know before you watch in a nutshell -
We have explained in detail in different ways HERE, HERE, HERE, HERE, HERE, HERE, HERE, HERE and HERE just how this mess happened, who and what got the ball rolling, and who got paid to keep it rolling when people tried to stop it. We explained how the Federal Reserve, the OFHEO, the Treasury Department, President Bush, and other members of Congress tried to get new laws passed that put the mortgage industry’s biggest players, Fannie Mae and Freddie Mac, under control of REAL banking regulators that can enforce Generally Accepted Accounting Practices. Those who monitor Freddie Mac and Fannie Mae, the OFHEO, can monitor but cannot enforce, they can only report to the finance (banking) committees in Congress. OFHEO has been asking for real banking regulator powers or the transfer of the oversight to such an agency for years. You can read these reports HERE and HERE (warning long so read them later). Frank and other Democrats on that committee and in the Congress voted no and worked to block efforts to reform it. This mess was completely avoidable.
See this video here before we get on to the shootout –
Ok Time for O’Relly vs. the Lying Politician
Frank: “I think that prospects for going forward (as an investment) is very solid.”
Keep this comment in mind as you watch the interview.
Frank says that he passed a bill in May… “I did what the Republicans couldn’t do in 12 years, get a bill passed the regulatory committee”
That is because most of the House Democrats, including YOU Barney, voted NO when the Republicans tried to fix this in those 12 years Barney. Those OFHEO reports above have been telling him what was coming for years and even the Democrat friendly New York Times warned of this in 1999…after years of knowing what was coming and denying it…. he says he passed a bill in May… After the Republicans tried to end the corruption being laundered through the “Affordable Housing Trust Fund” all the Senate Democrats voted no and Democrats in both chambers denied that the problems even existed as we saw on the video (more on that trust fund below). In 2005 the House Republicans had enough control to force passage in spite of Frank and his allies, but the Democrats in the Senate unanimously voted no and blocked it.
Frank:“..The regulation should be improved. Now from 1995 to 2006 when the Republicans controlled Congress we were in the minority we couldn’t get that done.”
We just saw on video, and it is a part of the Congressional record, Barney Frank saying that Fannie and Freddie are fine, I have other video’s of the other Democrats on his committee saying the same thing, and they even accused the OFHEO regulators of racism because the CEO of Fannie Mae was a black man named Franklin Raines and the committee wanted poor people to get these loans (that were bad loans).
FRANK: Although in 2005, Mike Oxley, of Sarbanes-Oxley fame, a pretty tough guy on regulation, did try to put a bill through to regulate Fannie Mae. I worked with him on it. As he told The Financial Times, he thought ideological rigidity in the Bush administration stopped that.
Oxley’s non-indexed mark to market accounting rule, which was put into effect by the Sarbanes-OXley law in reaction to the Enron scandal, was a big factor in this mess. I wrote an article that explains this whole crisis in plain English, step 5 of that article explain’s Oxley’s role. Oxley is trying to throw blame off of himself just as Frank is and a new article explaining his role and lies is on the way.
Back to Fannie Mae and Freddie Mac: Some Democrats were willing to go along with the bill until Oxley and the other Republicans added an amendment to the bill to prevent recipients of the “Affordable Housing Trust Fund” from engaging in political activities.
This is crucial. Trust funds supplied from the government have very little oversight and groups such as ACORN and LaRaza were getting millions in taxpayer and taxpayer backed dollars to engage in partisan activities on behalf of Democrats. These groups get this money because they do have affordable housing councillors, but they also engage in partisan activities and ACORN has been caught multiple times in multiple states for vote fraud. Oxley was right to add this provision in the bill.
When taxpayer dollars or taxpayer insured dollars are used to promote a candidate, the word for that is corruption. When Republicans tried to put an end to this corruption most Democrats in the House and all Senate Democrats voted to stop any attempt to fix Fannie Mae and Freddie Mac. They voted no and denied that there was a problem as you saw in the video, who is it that is engaging in ideological rigidity?
Frank: “But the basic point is that the first time I had any real authority over this was January of 2007. And within two months, we had passed the bill that regulated.”
A fat lie. As the ranking Democrat on the committee you had great influence and authority over the other Democrats on the committee going back for many years.
FRANK: And then also, one other point: The Senate was dragging its feet, as often happens. And in January of 2008, I asked Secretary Paulson to put in the stimulus bill. So, the earliest chance I got to put tough regulation of Fannie Mae and Freddie Mac, we did it.
The Senate was dragging it’s feet alright, the Democrats all voted NO..all of them…and why? Because Fannie and Freddie were paying members in the Senate too, most of them Democrats and they did not wnat the provision that would have stopped ACORN from engaging in partisan activities on behalf of Democrats. The Republicans did not have the 60 votes necessary to force the issue.
Here is where Frank tries to deny what O’Reilly just showed in the video. Frank is literally trying to tell the audience that you did not see what you just saw.
O’REILLY: All right, that’s swell. But you still went out in July and said everything was great. And off that, a lot of people bought stock and lost everything they had.
FRANK: Oh, no.
O’REILLY: And — yes, oh yes. Oh, yes.
FRANK: I said it wasn’t a good investment. Please stop yelling.
O’REILLY: Don’t give me any of that, we just heard the words. What are you…
FRANK: That’s wrong.
O’REILLY: You didn’t say that? You want me to play it again for you?
FRANK: You didn’t listen to it.
O’REILLY: No, I listened to every word you said. And I have the transcript right here.
FRANK: No, and I said it wasn’t a good investment.
O’REILLY: Yes, you said going forward, we’re going to be swell.
FRANK: No, I didn’t say swell. Excuse me, Bill.
An important observation needs to be made here. Frank did say that future prospects are looking solid.. ok O’Reilly uses the word swell but the meaning of what O’Reilly is saying is totally correct.
So instead of facing the 99% truth O’Reilly was giving him, Frank stands on the 1% part that wasnt sand says “I didn’t say swell”. This is the same tactic that Bill Clinton used. When his affair with Gennifer Flowers was exposed and someone said that he had an 11 year relationship with her, Clinton would say, “That is not true. I did not have an 11 year relationship with her.” – when the truth was that he had a 12 year relationship with her.
Politicians like to stand on a tiny detail that is only slightly wrong and use it to technically deny the allegation. Politicians are masters of this kind of deception and use this tactic often just as Barney Frank is here.
O’REILLY: Look, from August ’07 to August ’08.
FRANK: Excuse me, Bill.
O’REILLY: Don’t — look, stop the B.S. here. Stop the crap! From August ’07 to August ’08…
FRANK: You know, here’s the problem going on your show…
O’REILLY: …under your tutelage, this industry…
FRANK: Here is the problem going on your show.
O’REILLY: …declined 90 percent. 90 percent.
FRANK: Yes, but…
O’REILLY: Oh, none of this was your fault! Oh, no. People lost millions of dollars. It wasn’t your fault. Come on, you coward! Say the truth.
FRANK: What do you mean coward?
O’REILLY: You’re a coward. You blame everybody else. You’re a coward.
FRANK: Bill, here’s the problem with going on your show. You start ranting. And the only way to respond is almost to look as boorish as you. But here’s the facts. I specifically said in the quote you just played that I didn’t think it was a good investment. I wasn’t telling anybody to buy stock. I said it wasn’t a good investment.
Secondly, I wasn’t presiding idly over this. I was trying to get the regulations adopted. We got them adopted in May.
“I wasn’t telling anyone to buy stock”… but hey Barney people bought stock vbased on you saying that the future aspects are solid… and he knows that.
And now they are yelling back and forth at each other, I wish O’Reilly would have taken him apart like a good tactician, but this is what we have to work with so back to the show….
O’REILLY: You said going forward, it’s going to be swell. And people under that bought stock in that, thought it was a good investment.
FRANK: I didn’t say swell. I didn’t say swell. No, I said in fact in that quote that you played and didn’t listen to because you’re busy ranting that it’s not a good investment. I said that at the time. I did think we were going to improve things going forward. Yes, we had some things that needed improvement.
O’REILLY: All right, you want to — here, let me read you your quote here. OK? OK? “I do think the prospects going forward are very solid.”
Now O’relly catches him on the “I didnd’t say swell” dodge…
FRANK: But that’s not the part about it not being a good investment.
O’REILLY: Now, people bought stock when you said that.
FRANK: You are distorting it. Bill, you’re lying by your words.
O’REILLY: This is what you said.
FRANK: What about the part where…
O’REILLY: Not lying. And I played it and I read it.
FRANK: What about the part where I said it wasn’t a good investment?
O’REILLY: You said it’s not the best right now, but going forward this is going to be solid.
O’REILLY: People lost millions.
FRANK: I didn’t say solid, I didn’t say swell. You distort consistently. And you think ranting and raving…
O’REILLY: All right.
FRANK: …you don’t want to talk about 1994, like no history is relevant. The fact is that you had a problem with an administration — conservative.
O’REILLY: I know, it’s all the conservatives, it’s all the Republicans and not you.
FRANK: Oh, come on.
O’REILLY: None on you. That’s a joke.
Hotair.com comments on the exchange HERE.