[A Conservative Teacher] Obama Encouraging Banks to Make Easy Loans to People With Bad Credit to Destroy America?

[A Conservative Teacher]

We all agree that the Great Recession of 2008 that is turning into the Obama Depression was caused by poor lending practices by the government run corporations Fannie May and Freddie Mac. There easy loan programs to people with poor credit histories predictability led to problems when these people with a history of not paying back their loans did not in fact pay back their loans and the banks were left holding more and more toxic debt. These losses, caused by government policies and encouraged by government bureaucrats, led to a lot of people losing their jobs and losing their houses, and the only good thing that emerged from this disaster of public policy was that hopefully our nation learned its lesson to never engage in this sort of behavior ever again. Or so we thought.

The news of the day is that President Obama is now purposefully encouraging the same sort of policies that led to our nation's economic collapse only a few short years ago. From the Washington Post story Obama administration pushes banks to make home loans to people with weaker credit:

...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 it weren't true, it would be unbelievable. Sadly the foolish decisions of voters last year to vote for this guy will lead to all of us- you and me and all of our families- being poorer, less free, and less happy.

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Posted By A Conservative Teacher to A Conservative Teacher at 4/08/2013 01:30:00 AM