For those of you who have forgotten the roots of the Great (and ongoing) Recession, it began when the federal government mandated $2.4 trillion in mortgage lending to people who could not afford it.
In fact it began on Halloween, 2000.
“The U.S. Department of Housing and Urban Development today announced new federal regulations that require the nation’s two largest housing finance companies to buy $2.4 trillion in mortgages during the next 10 years to provide affordable housing for about 28.1 million low- and moderate-income families,” a government release dated October 31, 2000 announced. “The historic federal regulations by HUD raises the required percentage of mortgage loans for low- and moderate-income families that finance companies Fannie Mae and Freddie Mac must buy annually from the current 42 percent of their total purchases to a new high of 50 percent – a 19 percent increase.”
And as if the point of all this was lost on anyone, the release noted that this unprecedented lending authority was “among a series of actions HUD has taken to increase homeownership in under-served areas, particularly among minority Americans.”
What prompted the ill-advised opening of these floodgates? A widely debunked 1998 report issued by the Boston Federal Reserve which allegedly discriminatory lending practices against minorities.
Anyway, because the last six years apparently hasn’t been painful enough, U.S. President Barack Obama is pushing to … wait for it … “make more home loans available to people with weaker credit.”
“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,” The Washington Post reported this week. “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.”
Pardon our french, but seriously … what the fuck?
Did the long, sustained kick in the ass our country’s economy just received as a result of these exact policies not teach these morons in Washington, D.C. a damn thing?
Apparently not …
Because here we go again …
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14 comments
They break it with STUPID, anti-business laws to prop up the corrupt…and when it explodes, idiots, like FITS, blame Republicans.
When you have a always-wrong/no fault set up like that…you can be the biggest F*@k Up on Earth, like Obama is…and no one’s the wiser..or at least the fools that vote you in are not…
And Dumb@$$#$ like FITS will tell us the Republican, who has made millions and millions, actually succeeding in a job..is No Different fom this Ignorant Dolt, who has NEVER had a real job in his miserable, leftwing life…
And you wonder why we are in the freakin’ mess we’re in…
You working today?
They break it with STUPID, anti-business laws to prop up the corrupt…and when it explodes, idiots, like FITS, blame Republicans.
When you have a always-wrong/no fault set up like that…you can be the biggest F*@k Up on Earth, like Obama is…and no one’s the wiser..or at least the fools that vote you in are not…
And Dumb@$$#$ like FITS will tell us the Republican, who has made millions and millions, actually succeeding in a job..is No Different fom this Ignorant Dolt, who has NEVER had a real job in his miserable, leftwing life…
And you wonder why we are in the freakin’ mess we’re in…
You working today?
Obama’s bought by the banks. You know, the ones we bailed out the last time this shit was happening. The ones we never seriously prosecuted. The ones whose former executives somehow find themselves very cushy government appointments in high places. The ones who watered down regulations aimed at them.
Why not start handing out bad loans again? Uncle Sam has pen ready to write the check when the obvious happens.
Obama’s bought by the banks. You know, the ones we bailed out the last time this shit was happening. The ones we never seriously prosecuted. The ones whose former executives somehow find themselves very cushy government appointments in high places. The ones who watered down regulations aimed at them.
Why not start handing out bad loans again? Uncle Sam has pen ready to write the check when the obvious happens.
Dude, forcing banks to give loans to credit unworthy people is how the President got noticed in the first place.
http://www.realclearpolitics.com/articles/2008/09/acorn_obama_and_the_mortgage_m.html
Dude, forcing banks to give loans to credit unworthy people is how the President got noticed in the first place.
http://www.realclearpolitics.com/articles/2008/09/acorn_obama_and_the_mortgage_m.html
Home ownership for everyone is a great and noble idea, HOWEVER, the way to do it is to coach people up to home ownership, not lower the bar and reduce the qualifications. Everyone that has successfully owned a home knows that you have to be able to budget, save money for repairs, maintain the home, pay your bills on time and many other things.The reason this economic mess started is banks were forced to lend to unqualifed buyers. Everyone made money and lived large, until the bubble burst and the taxpayers were left holding the bag. We’ve been down this road before and look how that turned out…
Home ownership for everyone is a great and noble idea, HOWEVER, the way to do it is to coach people up to home ownership, not lower the bar and reduce the qualifications. Everyone that has successfully owned a home knows that you have to be able to budget, save money for repairs, maintain the home, pay your bills on time and many other things.The reason this economic mess started is banks were forced to lend to unqualifed buyers. Everyone made money and lived large, until the bubble burst and the taxpayers were left holding the bag. We’ve been down this road before and look how that turned out…
Home ownership is a luxury not a right! Makr something of urself then buy ur house!
Home ownership is a luxury not a right! Makr something of urself then buy ur house!
And once that happened, properties worth $ 20,000 all of a sudden were appraised at $ 40,000 and the banks would loan $ 50,000. Then a few years later the property really worth $ 20,000 was flipped for $ 60,000. Then the banks, appraisers and real estate agents got greedy. How about if we go back and undo all of the real estate deals from 2000-2008 and make everyone repay 1/2 of the gain or income made on the temporary inflated values? And you want to blame the poor dumb asses that bought a house. It’s not the poor that f#$% the system, they are the pawns in the 1% game.
And once that happened, properties worth $ 20,000 all of a sudden were appraised at $ 40,000 and the banks would loan $ 50,000. Then a few years later the property really worth $ 20,000 was flipped for $ 60,000. Then the banks, appraisers and real estate agents got greedy. How about if we go back and undo all of the real estate deals from 2000-2008 and make everyone repay 1/2 of the gain or income made on the temporary inflated values? And you want to blame the poor dumb asses that bought a house. It’s not the poor that f#$% the system, they are the pawns in the 1% game.