Sen. Shelby to the 30-Year FRM: Drop Dead

As I write this the Senate Banking Committee is holding a hearing on the pros and cons of Uncle Sam subsidizing 30-year fixed rate mortgages, which is right up there with Mom, apple pies and Chevrolets in terms of sacredness. But to read Sen. Richard Shelby's opening remarks regarding the hearing you might gather that this Republican from Alabama is not a big fan of the product. First off, he makes a huge blunder in stating that Freddie Mac was created during the Great Depression. It was not. Freddie was birthed in 1970. (Maybe he's getting his information from Fox News.) In his statement Shelby asks: “Is the 30-year, fixed rate mortgage always the best option for consumers?” Answer: yes it is, at least for most consumers, unless they happen to be a wealthy member of the Senate, who enjoy rich salary and retirement benefits paid for by – you got it – the U.S. taxpayer.