Obama White House plans new wave of housing foreclosures
Either by design or pure ineptitude President Obama wants a repeat of the housing bubble all over again.
During the Carter years a bill was introduced that at first seemed innocent and harmless enough. It was called the CRA (Community Reinvestment Act). Under the guise of government support for lending that would help renew urban decay and help rural communities reinvigorate old towns, the CRA was pushed and approved by Democrats. Little did anyone know in 1979 how this legislation would be used as a hammer to enforce a coming economic catastrophe decades away.
Momentum was building after the recession of the mid 1980’s and President Reagan’s able fiscal stewardship that Democrats began a push to change the legislation that kept banks and lending institutions regulated so as to avoid a financial meltdown. With the idea of solidifying a social platform that targeted blacks and Latinos for home ownership that would insure future Democrat voter support, the race was on to manipulate the finance industry to their whim.
During the Clinton years in office minority community organizers began the job of pressuring lenders to begin approving high risk loans for low income neighborhoods. Democrat legislation supported the pressure put upon banks to make potentially risky mortgages to applicants who lacked conventional credit worthiness. The stage was set for a hell bound train of deregulation and increasing sentiment that somehow people with no credit or money would be entitled to the great American dream of home ownership though that had not earned it.
A history of blunders that led to the disaster
Under President Clinton repeal of the Glass Steagal Act, Democrats were able to attain two goals. 1) To allow banks, lenders, and investment firms to merge and engage in conflicts of interest. 2) To allow Democrat pressure to force banks to accelerate their high risk minority targeted mortgages which would result in huge losses. Now investment firms could bundle real estate backed securities and derivatives based upon these worthless, destined to fail, mortgage portfolios and sell them to their customers who were led to believe they could expect an excellent return on their money. A ticking time bomb had been set into motion.
With the help of community level organizers like ACORN, who broke laws, taught their constituents how to break the law through voter fraud etc. bankers found themselves harassed and threatened. Sit in protests, confronting banking executives at their homes, and government threats of large fines, pressed lenders into making ill advised loans to recipients who would surely default having no means of qualifying, yet this was seen and characterized as institutional racism.
Putting their propaganda efforts into selling this fiscally unsound minefield of government mortgage backed failure would be Democrats like Phil Dodd, Barney Franks, Franklin Raines, and even Barack Obama, who sat on the board of Fannie Mae and Freddie Mac and assured Congress that the two federal mortgage guarantee giants were stable as growing losses from foreclosures mounted. These men literally lied and misrepresented the precarious state of the government’s fiscal feasibility in the face of huge losses that showed no sign of relenting by 2004. They were paid handsome commissions for their work too. Barack Obama received over a $100,000 for his part in the scam.
Using allegations of racism to destroy US economy
So, under the aegis of doing a great service to the poor minorities by helping them realize the American dream of home ownership, our financial industry, including Wall Street, was forced into the greatest fiscal calamity since the stock market crash of 1929. As Democrats used the narratives of class warfare and institutionalized racism our federal government literally created one of the most devastating economic failures in history, and we still haven’t recovered. All in the name and in the outright lie of attaining social equality through entitlement and intentionally fraudulent lending practices that risked billions in the life savings of investors. Nest eggs and retirements were lost among many who were convinced to buy into the supposedly burgeoning derivatives market.
Now we are seeing a new rise in a coming wave of the same deception and federally sanctioned blackmail again as Attorney General Eric Holder accuses lending institutions who must use sound qualifying practices in order to award mortgage loans slandered as bigots! Banks who won’t loan to those poor blacks and Latinos because of the color of their skin. The ability to pay back a loan, well that just doesn’t figure into what constitutes racism. No sir.
Resurrecting a monster from the dead
Well, guess what everyone. The beast is being resurrected under a new agency’s name. If Obama gets re-elected he is going to start the same show all over again. First he will open the floodgates of amnesty and allow millions of unprocessed formerly illegal aliens into the country while pardoning existing violators. Then the White House will begin forcing private lenders through federal sanction to make millions of ill advised high risk mortgage loans to people of color, who would never qualify under sound economic principals of qualification guidelines. With the recipe for disaster just as rife with fraud as it was the first time you can be assured that President Obama will succeed in his Cloward Piven vision of breaking this country down into a fiscal crisis that it can never recover from.
Another dangerous Obama scheme
Now Obama wants to use the FHA to generate low interest, low up front cost, lending to high risk loan applicants. This is the very same thing that led to the last fiscal disaster. Allowing non-creditworthy applicants 3.5% down on 3.5% interest 30 year loans will certainly encourage more of the same unwieldy lending practices that have already wrecked the economy. The general consensus among business experts is that federal policies will create a permanent nation of debtors with no chance of rectifying the persistent fiscal crisis. America will be forever transformed alright.
A ghastly outcome
It is most certain as the same losses pile up that the Federal Reserve will have little option left then to catastrophically devalue the US dollar into a post world war footing where a hundred dollars won’t buy a loaf of bread. There will be no quantitative easing scheme that will maintain the fiscal stability of a US dollar under the continued losses incurred by the federal government backing a new wave of foreclosures! This is the future under another 4 year term of an Obama presidency.