Have the Democrats learned anything from the existing financial problems?

From the Washington Times: Robbing the bank: Congress has its way with financial institutions

Some risks don't pay off. The time comes when the right thing to do is to let a bad investment sink. This is more responsible than continuing to throw good money after bad to keep unwise ventures afloat. For the housing market to turn around, bad mortgages must be allowed to sink -- but Congress has other plans.

Rep. Barney Frank, Massachusetts Democrat, is threatening to revive legislation that would let bankruptcy judges rewrite mortgage contracts if banks don't "voluntarily" write off a larger percentage of bad home loans. The policy ideas of the savvy chairman of the House Financial Services Committee should be taken seriously.

Mr. Frank was among the politicians who pushed for changes in underwriting standards over the past decade. Those new rules involved eliminating verification of income or assets and virtually eliminating down payments to get a house. Those modifications greatly contributed to the current financial crisis. There was a seemingly noble goal in loosening lending standards to increase homeownership among poor and minority Americans, but the changes created a time bomb that was set off as soon as property values began to decline. . . .

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