Tuesday, March 31, 2009

Being in the Old Guard V

Listening to Congressman Frank and Senator Orrin Hatch on Squawk Box, a show that I rarely watch, I must admit to having this nagging feeling of slight sickness. The former gentleman more than the latter induced such a feeling as spin is less preferred. Politicians often appear as pundits and not thoughtful advocates. Mr. Frank disparagingly spoke of the media. Arianna Huffington clarified this.

Congressman Frank and Senator Hatch appeared less like advocates for the people. Often times career politicians appear to be merely talking and not thinking. The blame game by Franks was also quite unattractive; he has been in Congress for years and a part of powerful committees. What has he been doing? I did, however, appreciate the mention of Senator Hatch and Senator Kennedy's Serve America Act.

Here is an exchange with Congressman Frank:

John Geanakoplos, the James Tobin Professor of Economics from Yale, made some excellent points about the real estate market. He spoke of the need to lower the principle on homes which helps the bond holder and homeowner. He asserts that the plan to reduce interest by Treasury still does not help the homeowner with his house that will be foreclosed upon.

As one who is directly involved in purchasing foreclosed properties, putting liquidity back into the market with cash purchases and seeing many people being foreclosed upon, the above are appreciated. Geanakoplos' insistence that the administration deal with foreclosures is right on. A bottom up approach is needed also, not the reverse.

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