Obama is preparing another stiff dose of bad mortgage poison for Americans.
After all, you may have survived the last one.
And that’s a serious problem for Obama.
More community reinvestment, meaning more risky loans that inevitably will default, is the Obama economic prescription for today. Bad loans extracted from banks for Obama voters without means to pay are the ultimate good; greedy capitalists who sell the loans will again be the cause of the disastrous results.
American economic prosperity is a big, fat, target for Obama. John Kerry, who openly admits recession is just perfect to save the rest of the world from imaginary global warming, has another brilliant, peculiar Democrat reason to destroy American economic prosperity forever.
Expanding the community reinvestment act
As we try to shake off the financial crisis, here’s a bright idea. Take a law that has led to the writing of an enormous amount of bad mortgages and expand it. Then take enforcement away from bank examiners and give it to housing activists.
Sound like a poisonous cocktail? Well, it is what the Obama administration and Democrats are currently stirring up on Capitol Hill.
The White House and Congress want to expand a 30-year-old law–the Community Reinvestment Act–that helped to fuel the mortgage meltdown. What the CRA does, in effect, is compel banks to seek the permission of community activists to get regulatory approval for bank expansions and mergers. Often this means striking a deal with activist groups such as ACORN or unions like the Service Employees International Union (SEIU) and agreeing to allocate credit to poor and minority areas that are underserved.
In short, the CRA encourages banks to make loans they would not ordinarily make. What’s more, these agreements often require that banks offer no-money-down mortgages and remove caps on how much debt a borrower can take on. All of this is done in the name of “financial democracy.”
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