Monday, July 11, 2011

Not the Onion

The mind boggles.

The housing crisis/sub-prime debacle was caused by government complicity in enabling fake mortgage originators to write loans and then turn around and sell them immediately to dupes (i.e., da Fanny and da Fred). The Dems voted down an amendment that would have required a 5% down payment to meet the "qualifying restriction." So, yes, the Chris Dodd quote, "this is biased! it would restrict home ownership only to those who can afford it!" is fake (this is the satirical source of that fake quote). But the Dems acted as if that was exactly what they believed, and voted down even a 5% down payment as being racist and biased. Seriously, they did that. Really.

Okay, but surely we learned something, right?

No, to the contrary. The Justice Department is trying to hunt down banks that resist making loans to people who have zero chance of paying them back. It doesn't seem possible, but it's true.

So now we know why the Dems voted down the Corker Amendment. They actually want to force banks to make zero down payment loans to people whose only income is public assistance. We are NOT DOING ANY FAVORS to poor people if we saddle them with loans they cannot pay back. Holder and his thugs at Justice are taking another step and blaming the banks for enforcing any down payment rule (the norm used to be 20%! But now 5% is too high! Yikes! YIKES!)

The Obama administration seems genuinely surprised at employment declines and the lack of growth. If you constantly abuse financial instituions, they are not going to loan that money. And if you try to force them to loan it, the money will disappear. The Roosevelt administration tried several of the same tactics in 1935-6, and the result was a second dip, with employment crashing.

As we say a lot here at KPC: Business needs certainty. But politicians like uncertainty, and fear, creating dependency. Okay, but if you make that play, Mr. Obama, Mr. Dodd, and Mr. Holder, you can't seriously expect to see economic growth. If you pursue Peronista policies, you will get Peronista results. Go ahead and cry for us. The U.S. is becoming Argentina.

I wish this were the Onion, but it's real.

(Nod to the Blonde)


Anomaly said...

Proof that many Democrats cling to the benevolent despot view of politics: if only we get the right regulators with the best intentions in power...

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