Here we go again.
Massachusetts Democrat Congressman Barney Frank, the chairman of the House Financial Services Committee, wants to lower the lending standards for condo buyers.
This is the way we got into the sub-prime mortgage crisis - "encouraging" Fannie Mae and Freddie Mac to lower lending standards to encourage more home ownership.
Dr. Thomas Sowell says Barney Frank and Freddie and Fannie are more responsible than anyone else for the financial crisis we are suffering right now:
The banks did not choose to lower the lending standards. The government leaned on them. The Justice Department under Clinton threatened them with prosecution if their lending patterns didn't suit the government. So, we had regulations. It was precisely the regulators who pushed the lower lending standards, just as Barney Frank is doing now, and that's at the heart of the financial crisis we're going through now.
You can watch Dr. Sowell discuss Frank's call for lower lending standards in the following video:
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