Frodly
Well-known member
- Joined
- May 8, 2009
- Messages
- 684
- Reaction score
- 321
- Location
- Brooklyn
- Gender
- Male
- Political Leaning
- Libertarian - Left
"Insanity is doing the same thing over and over again and expecting different results" and obama wants to repeat the home loan policies that got us into the financial mess we are now in. Is he insane, stupid, or is he actively trying to destroy America? I vote insane.
"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."
Obama administration pushes banks to make home loans to people with weaker credit - Washington Post
This is a stupid policy. However the reason for the economic collapse was not simply giving risky loans. It was banks and other organizations bundling those loans and selling them as derivatives. It created trillions of dollars of of financial assets based on far smaller level of real (and even worse vastly overvalued) assets. This is awful policy. Just like the financial reform was awful policy, as it did nothing to limit the activities that actually led to the collapse. However, this is NOT on Obama only. Our system is broken. Obama is simply a symptom of a broken system, NOT its cause.