Analyst's note: Absolutely must read and carefully consider the impact. Since we the American taxpayer will pick up the tab, we might as well understand the source of this new economic "train wreck" that will eventually come our way. When the gov't says they will "pick up the tab," remember that translates to the American taxpayer. For additional perspective I highly recommend Obama’s Alinsky Tactics Go into Overdrive.
File this under “Unbelievable.” We now learn from the Washington Post that the Obama administration, in its relentless quest for “social justice,” is pushing banks to make more loans to people with weak credit ratings. It seems that Obama and his “economic advisers” have concluded that the current “housing rebound” is “leaving too many people behind”—most notably, undercapitalized first-time homebuyers and nonwhite minorities with low credit scores.
To remedy this putative disaster, the administration wants banks to rely less on the time-tested, race-neutral lending criteria that have served as reliable barometers of credit-worthiness since time immemorial—income, net worth, credit history, etc. Instead, banks should “use more subjective judgment in determining whether to offer a loan” because, as Obama’s Federal Housing Administration (FHA) commissioner puts it, “there are lots of creditworthy borrowers … all the way down the credit-score spectrum.” And hey, if this policy ultimately causes borrowers to default on their loans, that’s no big deal. “Taxpayer-backed programs”—including those offered by the FHA—will magnanimously pick up the tab.
No, you aren’t in a time warp. This article wasn’t written ten years ago, before the housing-market crisis plunged the American economy into the proverbial sewer. Difficult as it may be to believe, the current president of the United States is actually prescribing precisely the same practice—government policies pressuring banks to lend money to unqualified applicants—that caused the crisis in the first place.
[....] Forbes magazine puts it bluntly: “Obama has been a staunch supporter of the CRA throughout his public life.” In other words, he has long advocated the very policies that already have reduced the real-estate market to rubble. And now he is actively pushing those very same practices again. The reason for this is not difficult to comprehend: The president of the United States is a socialist ideologue who reveres big-government interventionism and deplores the free market. For good measure, he also happens to be an economic illiterate who, in his pontifications about fiscal matters, has all the credibility of a pre-Copernican stargazer explaining precisely how the sun revolves around the earth.
Related articles:
SOS Alert: Stand against 'most important' piece of fundamental transformation
The Second Amendment as an Expression of First Principles
Perfidy and Betrayal: Madison Vs Obama
President Obama Owes the American People
State to grant Secret Service vast new powers
SOS Alert: Stand against 'most important' piece of fundamental transformation
Indoctrination & Stealth Data Mining for Lasting Change by Gov't
DHS is 'Controlling How Much Ammo is Available On the Commercial Market'
Americans, Are You Prepared To Die For A Communist Dictator?
Study: Obamacare to increase claims costs by average of 32 percent
DoD furloughed & Congress sleeps while Obama gives $700M jizya to Palistine jihadists
Truth or consequences regarding ammo shortages
Obama a Muslim Brotherhood Plant
Shocking Documented Interview regarding 'The Basics of Islam'
DHS will let Saudi passengers carry boxcutters & skip normal passport controls at U.S. Airports
The Secret Document That Set Obama's Middle East Policy
Obama 'bows and scrapes' using our tax money to provide 'rightfully earned 'Jizya'' to Egypt
See why America must stand with Truth
Obama trying to 'destroy this country' ...Guess who is enabling
Scratching the surface for America's enemies foreign and domestic
Top US Federal Judge Assassinated Following Threat To Obama Agenda?
U.S.-backed Syrian rebels now killing infidels
Obama Poised to Carry Out Hostile Military Takeover of US
Price is Right: OBAMA SELLING ACCESS TO HIS NATIONAL ADVISORY BOARD
What Rand Paul and Other Good Citizens May Have Missed
Assassination by U.S. President & other issues important to American citizenship
