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Saturday, April 06, 2013

Obama Pumps A New Housing Bubble

Obama administration pushes banks to make home loans to people with weaker credit ... The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place. President Obama's economic advisers and outside experts say the nation's much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession. − Washington Post

Dominant Social Theme: No homeowner left behind.

Free-Market Analysis: It's happening again ... In the late 1990s, credit was screwed down in the US, creating in the tech bubble and bust. In the early 2000s, the Fed kept rates so low that some homebuyers actually received offers of remuneration were they to take advantage of credit offers.

There was a lot of talk early on during the financial crisis about the Fed's too-low rates. But all that died away with Ben Bernanke's various quantitative easing programs.

It was a kind of "shock and awe." What Bernanke had decided to do was so outrageous that it made low rates pale by comparison. When there are reports of Bernanke writing checks for up to US$16 trillion, it is hard to summon a great deal of interest in discussions over too-low rates.

And no doubt, this is what the Obama administration is counting on – though why they would seek to repeat the mistakes of the earlier 2000s when they are still fresh in the minds of many is a puzzle. But it seems the administration is going too push ahead.

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7 comments:

  1. WTF is he stupid or something we are in this mess BC of people that cant afford homes in the first place?

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  2. It didn't work before so lets just do it again! This President is out to destroy America. He's got the full support of O'Malley to help him.

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  3. This is the crap that got us in this mess to begin with! These dumbasses will never learn!

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  4. He's extremely stupid and so are his supporters. He's down near the moron/imbecile/idiot IQ level and the bankers, insurance industry exes, etc saw a "live one" in him and are taking advantage and lining their own pockets. He's got his head shoved so far up big business butts it's unbelievable. His supporters are still convinced he's for the little guy-that's how dumb they are.

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  5. This is exactly what his "career" as a "community organizer" encompassed. Suckering people into thinking they could afford a home and all the money that goes into homeownership including taxes, upkeep, insurance.
    A lot these people ended up in foreclosure and ultimately were left without a pot to take a leak in and the bankers and loan companies all got government bailouts and didn't lose a penny.
    But the stooges keep on voting for him.

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  6. Does anyone know Obama's school records, Because I think they are straight F--

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