This is not a flashback: Administration pushes banks to make home loans to people with weaker credit.
Seriously? Did Barack Obama and his advisors learn nothing from the housing collapse just a few years ago or are they delusional enough to believe that our economic collapse was simply Bush's fault and had nothing to do with the housing bubble? Barack Obama's administration wants to push the same exact policies which got us into this mess to begin with: He wants to use taxpayer money to insure home loans that go to weaker credit borrowers. Apparently we didn't learn our lesson the first time around; We must make it again and hope that this time it works.
That's just dumb. This policy is nothing but good politics for Barack Obama, who wants to be seen as a champion for the middle class and struggling Americans. I have an idea, Mr. President. How about you implement policies that actually get our economy growing again? That would ultimately solve this problem of people not be able to qualify for home loans. If we have a thriving economy, it means that people are finding good jobs. With decent jobs comes the ability to establish stable credit, and ultimately qualify for things like home loans, without being an extreme risk to the banks.
The Washington Post reports, “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.” Oh that's great for the banks, but what about the taxpayers who are ultimately stuck with the bill?