Barney Frank: Mr. Consistent

One of the selling points of TARP (and I know I am using the term "selling points" with abandon) was that much of the money invested would, if the banking industry stabilized, return a profit to the taxpayers. The bill included a provision saying that profits from the program "shall be paid into the general fund of the Treasury for reduction of the public debt."

With the taxpayers on the hook for an astonishing amount of money, the idea that some dividends might be returned to the general fund to help pay off the enormous debt was thought of as at least a small silver lining in a huge dark cloud. Perhaps the taxpayers would be on the hook for a few billion less than was advertised.

Enter Barney Frank.

The wanton Massachusetts legislator has found a better use for the money than to pay down the debts of the taxpayers. Frank, one of the masterminds of the current financial crisis and perhaps the most significant apologist for Fannie and Freddie in their run up to insolvency, would rather see some of the money funneled into a trust fund that he could control to help with low income rental housing and would like to see additional portions of the profits funneled to support "neighborhood stabilization."

In case no one remembers, it was the artificial propping of low income housing that was partially responsible for this huge debacle to begin with, and it was extreme pressure from "neighborhood stabilization" groups that literally forced many lending institutions to engage in risky lending practices when they had failed to voluntarily do so at the government's urging. Now Frank, a dim bulb in a club of dim bulbs, wants to skim some of the few profits that might be realized by the TARP program and shove them right back down the same rat holes.

I suppose it should be comforting to me that at least some of our fearless leaders in Congress are consistent.