If there was any doubt about his loyalties it would be shocking, but this should latest scheme should vaporize that. Those who don’t heed the lessons of history are doomed to repeat it. Take this headline for instance…
Do you think Obama will be able to blame Bush for bringing about the sequel to the housing bubble?
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.
So the answer is to bring those who have gotten ahead, as all the presidents men are implying, back down with the behind?
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…(B)anks are largely rejecting the lower end of the scale, and the average credit score on FHA loans has stood at about 700. After years of intensifying investigations into wrongdoing in mortgage lending, banks are concerned that they will be held responsible if borrowers cannot pay. Under some circumstances, the FHA can retract its insurance or take other legal action to penalize banks when loans default.
Translation: Government meddling created this problem, government meddling is preventing a full and complete recovery from taking place, and government meddling is looking to bring back the conditions that created the problem, because this time those conditions are what will solve it.
What could possibly go wrong?