April 12, 2007

Sell your house now: a few weeks ago we ridiculed Barney Frank's proposal to hold investors liable for purchasing mortgage-backed securities in the secondary market if any of the underlying mortgages were actionable. The measure would effectively abolish the $2.12 trillion secondary market for mortgages, which would cause an economic collapse of the American housing market, with repercussions across the entire economy similar to Japan's decade-plus-long deflation, all for the benefit of a handful of trial lawyers.

Now, via Kirkendall, we learn that Bloomberg is reporting that Spencer Bachus (R-Ala.), the lead Republican on the House Financial Services Committee, supports the legislation. Is it too much to ask that at least one of the two parties in the House put someone who understands financial services in a leadership position on the House Financial Services Committee?