Fools Never Learn

Discussion in 'Politics & Religion' started by Tsing Tao, Apr 3, 2013.

  1. Tsing Tao

    Tsing Tao

    Fools Never Learn

    Proving that fools never learn, the Obama administration pushes banks to make home loans to people with weaker credit.

    President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

    In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

    Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

    Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

    Here We Go Again

    Mark Hanna commented "And Here We Go Again"

    Indeed. Home markets are booming again so let's get everyone in on it.
    The whiners are piling on already.

    “If you were going to tell people in low-income and moderate-income communities and communities of color there was a housing recovery, they would look at you as if you had two heads,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit housing organization. “It is very difficult for people of low and moderate incomes to refinance or buy homes.”

    The FHA, in coordination with the White House, is working to develop new policies to make clear to banks that they will not lose their guarantees or face other legal action if loans that conform to the program’s standards later default. Officials hope the FHA’s actions will then spur Fannie and Freddie to do the same.

    The effort requires sign-on by the Justice Department and the inspector general of Department of Housing and Urban Development, agencies that investigate wrongdoing in mortgage lending.

    Proven Results

    We tried this already. The results were not pretty, to say the least.

    In spite of all the huffing and puffing by this administration, no one went to jail. Heck, no one was even prosecuted.

    And now, after whining for more bank regulations, the White House wants even looser lending standards. Let's lower our standards so everyone qualifies for a loan. Again! And while we're at it, let's make the banks immune from prosecution! Then let's put taxpayers at risk via "taxpayer-backed programs" for the whole boondoggle.

    This is all so obviously stupid that only a fool could propose it.

    And a fool in the highest spot did just that.

    Mike "Mish" Shedlock
    http://globaleconomicanalysis.blogspot.com
     
  2. Lucrum

    Lucrum

    Obama and company are obsessed with their idea of social justice, common fucking sense be damned.
     
  3. LEAPup

    LEAPup

    I bet Jamie Dimon is kicking himself (rightfully so!) in the ass for pouring $$$$$$$ into the 2008 onazi campaign.
     
  4. Ricter

    Ricter

    Agreed, this is the cart before the horse.
     
  5. Tsing Tao

    Tsing Tao

    As usual, you respond with ambiguity and obscure one-liners. Care to elaborate on what you mean?
     
  6. Ricter

    Ricter

    Simply meant that jobs for the young should come before loans for the young.
     
  7. lol . . . let alone ice-cream.:).
     
  8. I think everyone can agree with that.

    You know youd probably take half the amount of shit you do around here if you would just state things like that in simple terms, instead of your little riddles that no one understands.

    Besides which. what is the point in posting, if you are the only one who understands it? Why not start a diary if thats your intention.
     
  9. pspr

    pspr

    +10
     
  10. Tsing Tao

    Tsing Tao

    Ah. In that we are in agreement.
     
    #10     Apr 4, 2013