The housing bubble, anyone remember it? That’s when people who would not have otherwise been able to get credit to buy a house were given it anyway because the government pressured banks to do it. Everybody gets a home, and if you’re against this policy, you clearly hate the poor. Then the bubble burst, defaults were rampant, and more government programs had to be thought up to save us from the previous government programs. And, as Bruce McQuain notes at the Q&O blog, yes, the government’s meddling is what caused that sub-prime mortgage meltdown, which then was a huge contributor to the subsequent recession.
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.
Those who do not learn from history are doomed to … create public policy to repeat it. It’s allegedly being instituted to allow the poor to participate in the housing recover, but you can be sure that it won’t be a temporary measure, because any attempt to return to semi-sane credit checks will, will, be demagogued, once again, as eeevil Republicans throwing the poor out on the streets. This has to prove without a doubt that Democrats only care about intentions, not results. Even if the results have just finished happening.
Short-attention span voters love this stuff. Obama just thinks anything Bush did he can do better, and in this case, he very well could. We just did this, like, six years ago, and Barney Frank told us it was all good and not to worry. And then we had to bail out a bunch of banks, because we made them make loans to people who couldn’t pay them back, because, you know, racist / sexist.