Rolling the Dice

" Housing crisis is a blast you ain't seen nothing yet. Congressman Barney Frank -- chairman of the house financial services committee. Once essentially roll the dice again and lower the standards on buying condos in America. After all I mean we learned our lesson on the houses. God knows what -- He's asked Freddie and Fannie -- roll back those pesky financial guidelines because those rules quote. Really be too onerous. Doctor Thomas -- is the author of housing boom and bust he joins me now doctor -- welcome back to the program server. I can't believe what I what I heard this site but this is the most irresponsible -- I think I've ever seen."

" Well there's a lot of claimants for that title but I -- he might he might well win. But what do you think about there's no reason for him to learn your lesson from any of this I don't doubt for a minute -- he's gonna be reelected. He gets credit for helping particular class the people. When the foreclosures come. He's able to. Blame somebody else. So so. How does this."

" And when we -- when we are. A bailout nation. How does this and when we don't learn our lessons."

" Well people do learn a lesson in the marketplace. Unfortunately there's no there's no incentive for politics to learn -- lesson. What what bought it -- is advocating would -- to try a lower you know the look lending standards nor the more people get -- homeownership. That's been tried as far back at the 1920s. By the Republicans in the 1930s by the Democrats. After World War II by both parties and all these cases -- rates went up. And nobody who advocated those drug -- those lower lending standards would never punished politically."

" You know I'm duck rice the interview with Bill O'Reilly. And Barney Frank and Barney Frank actually I mean he actually said. More there wasn't enough regulation that was the problem and Bill O'Reilly thing. -- you know why and who is saying we should lower the standards he said that's absolutely untrue. How responsible is Barney Frank and Freddie and Fannie for what we're going through right now."

" More so than probably anyone else connected with -- all of us. The banks did not choose to lower their living standards the government leaned on them the Justice Department under Clinton -- threaten them with prosecution. Delivery -- didn't shoot the government. So there that we had regulation was precisely the regulators. Who pushed the lower -- has just -- frank is doing now. And that's at the heart of the financial crisis we're going through now."

" So. We're not learning our lesson -- this week everybody celebrated as saying no way they should that mean -- Bernie Madoff is that -- a criminal. Destroyed people's lives. But everybody was wanting blood from him and nobody's even looking at Freddie and Fannie and the fact that there's no new regulation there. Could you. Could you design that -- coming collapse. Any better than what we're doing now in our country by. By not by my bailing everybody out not holding the right people responsible by ignoring the problems and -- in congress."

" I don't think anybody could design. Something that was group. More destined for disaster -- this is not hindsight. Long before this -- the -- housing bubble burst all kinds of people. Than London. Washington Wall Street I even did a -- The Wall Street Journal say this thing -- lead to a collapsed like a house of cards so all sorts of people -- for -- long time. Bawdy frank brushed aside all those people who set -- up over emphasize safety that we won't get a."

" Portable -- but I'm but I'm asking you now. We are just well I don't even think we're coming out I think this is false bottom in this in this -- market in our economy now. We're not even really coming out of that we just kind of appear to this -- stabilized a bit. And yet word we're repeating the same mistakes except on a national level now. -- our -- our with our own treasury I'm talking about. Could you designed the collapse of our country any better than what we're doing today not what we did yesterday but what we're doing right now."

" Well. All -- not. I mean time and time again. When you lower the standards. That is led to more foreclosures. And because the way Freddie Freddie Mac operate. The lenders have very little incentive to award about whether the realms of slave well their universe do you do that you -- somebody. And then you -- little little more Vista Fannie Mae and Freddie Mac. It becomes their problem. Which means ultimately it becomes the taxpayers."

" well there -- where were were. We're now talking about -- racing student loans that if you have a student loan. Beaten you and you can't pay yet when in twenty years they just -- that I mean. What do you mean you just erasing you don't just you race money it's somebody pays for that's the taxpayer it's it's. You know -- my mother used to always say money doesn't grow on trees. I don't I think they actually think in Washington didn't money does grow on trees. Well at least at the Federal Reserve. Are you -- Are are are you at all convinced that we are. Through this psyche appearing on TV -- green issues."

" No I'm not. What no I'm not at all because for one thing. Oh we're not through with all these huge amount of spending. Because I saw just recently we've only spent 6%. All this money so far. The only other 94% of that when he gets out there. Idea nor would be surprised if we don't feel a tremendous amount of inflation."

" But souls always good to talk to it and your book is absolutely tremendous and thanks -- hard work that you live put on -- appearances. If you haven't read it yet you should it's it it's an easy way to understand exactly. What how this happened and who's responsible and it's a little bit of everybody it's housing boom bust up -- thanks."