And it looks like the social engineers do not plan to disappoint. Remember when I pointed out that the same politicians that created the environment that caused the housing collapse demanding to be the ones to fix the evil lenders was certainly not fixing anything and likely to make it worse? Well, I hate to be right on this, but I am:
Just days before Christmas, the Obama administration gave Bank of America a big lump of coal, levying a hefty $335 million dollar fine on the company for discriminating against minorities in its lending practices.
Supposedly Countrywide, a mortgage company bought by Bank of America in 2008, had not given out enough low interest rate loans to minorities from 2004 to 2008.
Look, I have no skin in the game if B of A gets hammered, and I certainly dislike Country Wide with a passion because Mozilo and Dodd are butt buddies, but the problem that caused the economic disaster the left blamed on everyone but their social engineering policies, and which have been prolonged, because of 3 years of idiotic Keynesian policies that have done nothing but funnel trillions of tax payer dollars to democrats and their friends, are still there.
What the large fine reveals is that President Obama hasn’t learned anything from the recent financial crisis.
What the president sees as discrimination in awarding a mortgage, lenders saw as wise business decisions.
If a borrower can’t afford a down payment, Obama appears to view charging a higher interest rate as discrimination. Lenders also think that they shouldn’t treat borrowers whose sole source of income is welfare or unemployment insurance, the same as those applicants who have a job. But Obama, again, appears to view this as discrimination.
There is obviously a problem with no down payments: if the price of the house falls so that it is worth less than the loan, people will default and walk away. Similarly, when unemployment insurance or welfare runs out, borrowers might find they can’t keep paying their mortgage.
The Equal Credit Opportunity Act the Obama administration used to impose this fine was exactly what helped cause the mortgage crisis by forcing lenders to make risky loans that they didn’t want to make.
Does that Equal Credit Opportunity Act sound familiar? I mentioned in my long discussion with the people that told me government was the solution, not the problem, while ignoring that government forced lenders to throw pearls to swine despite the obvious problems. I guess the people that told me I was wrong now have some crow to eat. And so soon! Exhibit A, people. There will be more because the social engineers will be damned if they give up trying to breed Unicorns.
B of A just got hammered for Country Wide wanting to charge high risk lenders more or not seeing welfare as reasonable source of income on applications. What do you think the impact of the government bitchslapping a lender into giving high risk lenders money to buy a house will do to the market yet again? And that 2000 page monster Dodd & Frank put together will do nothing but make it more costly and the impact deeper. Think the LSM will tell anyone this was a bad move? Or do you think they will make it look like Team Blue is again helping the little guy out? Heck, will they even report it? Yeah, I thought so.
Damn, I hate to be right. What’s the definition of insanity again? To do the same dumb thing over and over, fail, and still expect that the next time will make it work? And no, there is no appology needed from the usual suspects that told me the problem was the evil banks, and not the stupid social engineering assholes in government and their insane policies….