Obama Is Engineering Financial Collapse Redux

Discussion in 'Politics' started by pspr, Apr 3, 2013.

  1. pspr


    Do Democraps even care if they destroy America? To get votes they seem willing to do anything regardless of the lessons learned or the harm it will do.

    The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

    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.

    Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.

    “If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.

    Administration officials say they are looking only to allay unnecessary hesi_ta_tion among banks and encourage safe lending to borrowers who have the financial wherewithal to pay.

    “There’s always a tension that you have to take seriously between providing clarity and rules of the road and not giving any opportunity to restart the kind of irresponsible lending that we saw in the mid-2000s,” said a senior administration official who was not authorized to speak on the record.

    The administration’s efforts come in the midst of a housing market that has been surging for the past year but that has been delivering most of the benefits to established homeowners with high credit scores or to investors who have been behind a significant number of new purchases.

    “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.”

  2. Lucrum


    Nope. Their goal is to force their agenda down everyone's throat.
    They desperately want a populace that thinks and marches in lock step.
  3. pspr


    So, they would rather rule in a "Weak France" than share power in a "Superpower America"?
  4. Disagree. I think it reasonable that Odumbo actually WANTS to and INTENDS to destroy America... and to take personal credit for the damage.

    The DemoCraps are more like stupid lackeys in his game.

    :mad: :mad:
  5. Why would any lender want to offer residential mortgages?

    The government will sue you if you don't lend to enough minorities. Then they will sue you because of the terms of the loans to the same minorities they forced you to lend to. Then when the subpar borrowers default, the government will do everything possible to prevent you from foreclosing. Then various states and the federal government will line up to extort money from you and also insist that you fund leftwing "community" groups, which is a codeword for providing slush funds for pols.

    Then the government wrecks the real estate market by idiotic Federal Reserve policy and punitive tax measures.

    Then they have the audacity to insist that you go through the whole process again.

    And oh by the way, it's all very unfair because the "rich" profited from rising home values.
  6. LEAPup


    No question that is his goal!