Pumping a new housing bubble: The Obama administration redefines insanity & ignorance
By The Tribune-Review
Published: Saturday, April 13, 2013, 9:00 p.m.
The “spread the wealth” Obama administration is encouraging relaxation of mortgage-lending standards — “help” for less-affluent borrowers that threatens a housing-meltdown repeat, which would harm all Americans.
Too many mortgages for too many borrowers with too little ability to repay inflated the housing bubble. Defaults that inevitably resulted burst that bubble — disastrously. Now, despite signs of housing's recovery — and lenders' sensible imposition of tighter standards for borrowers — this interventionist, redistributionist administration can't leave well enough alone.
It's insanity, redefined. It's ignorance, doubled-down.
The Washington Post reports that the Obama White House is:
• Pushing banks to make greater use of the Federal Housing Administration and other taxpayer-backed programs that insure mortgages against default
• Urging lenders “to use more subjective judgment” in evaluating mortgage applicants
• Assuring lenders, via its Justice Department, that they won't face legal or financial consequences if defaults rise — which they surely will.
By “helping” first-time and borderline-creditworthy buyers today, the Obama administration moves the housing market and the economy toward another crash tomorrow. Thus, taxpayers — and the economy — will suffer when a new round of mortgage defaults occurs in an unnecessary crisis driven by an administration whose political motivation far exceeds its economic savvy.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- The Thursday wrap
- The case of Beaver County Sheriff George David: He should be jailed pending trial
- The Obama/Biden visit: Oh, the irony
- The problem with BNY Mellon: It wears blinders
- Paying the ObamaCare premium
- The Nevada standoff
- Voter fraud: Multiple-voting Melowese Richardson gets a federal pass
- Saturday essay: Deck of dreams
- Sunday pops
- Springtime in Connellsville: A destination we call home
- Vladimir the corrupt: Up the sanctions against Putin