Obama Administration Wants More Bad Mortgages

Since 1977, Government statutorially required, and insisted by every means, that mortgage bankers write loans to buyers who could not pay. Andrew Cuomo and Bill Clinton built this process to a pinnacle in about 1997.

Home ownership became a right and an entitlement created by government; but not a trace of it can be found in the Constitution.

The government broke both arms patting itself on the back about increased home “ownership.”

The bubble of under-capitalized demand became a bubble in home valuation, attracting speculators who freely availed themselves of the new imaginative financing and nothing-down mortgages.

Government, through GSEs and otherwise, helped the bankers re-package the bad loans to disguise the risk and make the obvious problem invisible. The time-bomb was spread around the world.

Now your retirement investments have been all but destroyed.

The Obama “administration” blames greedy capitalists, exclusively.

Tax-cheat Tim blames greedy capitalists.

I submit that bankers, however greedy, stood to gain nothing by writing bad loans beyond creating fodder for politicians. Bad loans were not the conception of greedy bankers. Bad loans are the root cause of the problems, and it is bad loans that must not again become government political strategy.

Government, ably assisted by ACORN and Obama, will do the same thing, again, unless we stop them; and government will tell you as much.

Obama will stop at nothing, including the appointment of “progressive” bureaucrats like Tax-cheat Tim, to destroy banking, profit, free markets, and your financial independence.

The solution to risk, is to not write bad loans. The solution to risk, has nothing to do with how bad loans are packaged. The bad loans will always be – bad loans.

Obama will never understand this simple fact, because to Obama, there exists only packaging. There is no content.

See Obama Wants to Control the Banks – There’s a reason he refuseds to accept repayment of TARP money. Obama will tell the banks to whom and at what rate to loan money; like he is telling Detroit what car Americans will buy.

And this: Obama has his foot on the neck of TARP banks by Rick Moran

And this, on government’s role in pushing risky derivatives – led by Tax-cheat Tim:

Geithner speeded up derivative trading

Don Surber

The Washington Post discovered that Tax Cheat Tim Geithner actually regulated banks before he blamed the economic woes on de-regulation.

Now they tell us.

I thought everyone already knew this, but the big Page One story in the Washington Post today is: “As Crisis Loomed, Geithner Pressed But Fell Short.”

He worked to streamline the trading of deivatives.

Wrote the Post: “Billions of dollars worth of financial instruments known as credit derivatives were being traded daily, as banks and investors worldwide tried to protect against losses on increasingly complex and risky financial bets. But the buying and selling of these exotic instruments was stuck in a pencil-and-paper era. Geithner, then head of the Federal Reserve Bank of New York, pressed 14 major financial firms to build an electronic network that would cut backlogs and make the market easier to monitor. “

Of course, he did not monitor them.

But the backlog of derivative trades disappeared, helping those traders at AIG work more efficiently.

Look, I am not blaming Geithner for this mess.

I am saying his cure — regulation — is not the answer because regulation is only as good as the people doing the regulating.

Case in point: Tax Cheat Tim Geithner.

“Even as critics have questioned how he used existing power before the crisis, Geithner, as Treasury secretary, now leads the push for the biggest expansion of financial regulation since the Great Depression. His sweeping plan to overhaul the U.S. financial system would empower regulators to broadly analyze risk and would grant more authority to the Fed and its 12 reserve banks,” the Post wrote.

Never overlook the possibility of what this rigamorole is all about is a big CYA for Geithner for screwing up his last job.


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