The Washington Post is reporting that President Obama and his administration are pushing to put some kind of government arm-twisting to the banking community to once again put into practice the failed Bush policy granting home loans to people with a weak or poor credit history. I suppose that is one way for Obama and his cronies like Pelosi and Reid to continue blaming Bush for the near collapse of the housing market, just bring back the failure and come 2016 the Democrats can blame those evil Republicans and Mr. Bush (who will have been out of office for eight years) for the terrible state of the banking and housing economy.
According the the Post article 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.” That is surprisingly nearly word for word the same reason given by President Bush’s economic advisors when they pushed bankers and other lending institutions to offer loans for homes to those everyone knew would never be paid off causing one of the biggest housing crashes in American history. I suppose the adage is true - if you don’t succeed at destroying America’s banks and economy “try, try again!”
The Obama administration is taking on an approach not fostered by Mr. Bush when he ruled the roost. They have urged the Justice Department to “provide assurances to banks...that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.” The first thing that came to mind was how this reeks of another violation of separation of powers, secondly, just how can the executive branch of the government “urge” Justice to set aside a citizen’s right to due process? After the abject failure of the similar Bush housing-lending venture it is understandable why banks are reluctant to once again fall into the sink-hole of lending to people they know cannot afford to pay back even the principal on a mortgage much less the interest.
Bankers and lending institutions are wary, as they should be and I agree with Ed Pinto of the American Enterprise Institute, “If that were to come to pass, that would open the floodgates to highly excessive risk and send us right back on the same path we were just trying to recover from.”
How serious is Mr. Obama about getting this economy under control? His current policies, along with a Congress still unwilling to respond to the reality of the U.S. economic slide will increase the debt to ever increasing unfathomable levels of spending and now with the President’s call to rehash a past failed housing-lending policy he is guaranteeing this nation’s fast track to becoming just another Greece and Spain. This can’t be an accident. He surely isn’t that ignorant of the economic facts? If he is then he needs to step down. If it is intentional then he needs to be impeached. Either way he is untrustworthy and no longer the person best suited to lead this nation out of its current economic woes. That isn’t Obama-bashing. It is simple common sense.