The “This” referenced above is the horribly stupid idea that social engineering leftards can use the power of government to force lenders to make loans to high risk people, and that that will have no repercussions. What could go wrong this time? Lets take a look at the article.
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.
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.
Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.
As I pointed out when Dodd & Franks produced a 2000 page abomination, one that did absolutely nothing to prevent the fundamental underlying problem of the economic depression we now have been languishing in for over 5 years, back when: it is a question of how soon we see a repeat. The social engineers are not giving up on their wealth redistribution schemes, no matter how many times they fail and how much it costs the tax payers. After all, look how easy it was for them to blame the banks, the evil rich, and of course Darth Boosh, and how many people actually believed them.
No amount of wishful thinking by leftards, and definitely no amount of coercion and/or cajoling, will bend the laws of economics and human nature. But the social engineering collectivists refuse to give up on the government planning. Maybe they need a quick lesson of how well the Gosplans efforts worked for the USSR. These things will always, yes, I said always, fail. This attempt by team Blue will be no exception. And we will pay for it.
So now team Obama is picking up right where we left off with the last recession, and telling lending institutions to start farming out high risk loans again. The difference this time is that we have a horrible economy, so the risk is even higher. When most, if not all, of these lending institutions don’t or pretend to comply, I expect government to take the stick to them. Hard.
They will again have to make assurances that tax payer bailouts will save the lenders, and on top of that they will have to put together another scheme to make these high risk loans palatable. When results turn out the same as before, the progressive socio-engineers will be befuddled. How could it have gone wrong? We have a 2000 page monster document that this time will make sure nothing can go wrong. My money is on an even more damaging and costly economic implosion, and then, in a fraction of the time it took the last one to happen. A decade at the most.
Anyway, this last thing about the WaPo article really ticked me off.
“If you were going to tell people in low-income and moderate-income communities and communities of color there was a housing recovery, they would look at you as if you had two heads,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit housing organization. “It is very difficult for people of low and moderate incomes to refinance or buy homes.”
Really? So the laws of economics coming back into focus and being followed now is anti-middle class and racist? Fuck progressives are stupid people. We deserve the economic meltdown these people are working so hard to straddle us with. And when it fails they will blame everyone but themselves and the idiotic shit they believe in. Wealth redistribution is the most evil idea to ever fuck over humanity in general. These people are going to give us the next dark age.