What Could Go Wrong? Obama Asks Banks To Offer Risky Loans

[Geee]

Human Events:

According to the Washington Post, the Obama administration is pushing big banks to make more home loans available to Americans with bad credit – the same kind of government guidance that helped blow up the housing market:

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

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.

Think about this statement. The administration is asking banks – banks that Washington bails out; banks that Washington crafts regulations for — to embrace risky policies that put the institution and its investors (not to mention, all of us) in a precarious position. So precarious, in fact, that banks have to ask government if they can be freed of any legal or financial consequences.

[clearvision]

Too many votes that can be bought to pass up.

[cudjo]

Just what we need, a few million more low wage earners buying half million dollar house they can't afford.

[nickydog]

I think we've been down this road before. Not that long ago.

[Pepper]

@Geee

the thing about Zero's regime is that Obama's plans are so audacious and transparent. The idiocy and vote buying is there for everyone to see yet nothing is done.