Over the last couple of weeks, I’ve been traveling around the country and talking with folks about my blueprint for an economy built to last. It’s a blueprint that focuses on restoring the things we’ve always done best. Our strengths. American manufacturing. American energy. The skills and education of American workers.
And most importantly, American values like fairness and responsibility.
We know what happened when we strayed from those values over the past decade – especially when it comes to our housing market.
Lenders sold loans to families who couldn’t afford them. Banks packaged those mortgages up and traded them for phony profits. It drove up prices and created an unsustainable bubble that burst – and left millions of families who did everything right in a world of hurt.
It was wrong. The housing crisis has been the single biggest drag on our recovery from the recession. It has kept millions of families in debt and unable to spend, and it has left hundreds of thousands of construction workers out of a job.
Who created the policies that forced these banks to make loans to people who had no business getting those loans?
And who helped push those policies?
Why Mr. Obama did.
And now he wants to whine that the banks shouldn’t of given those high-risk loans out when they were REQUIRED to?
Now, we know what happens, because we’ve just seen it — what happened when we stray from those values. We saw what happened over the past decade when we strayed from those values — especially when it comes to the massive housing bubble that burst and hurt so many people. Millions of families who did the right and the responsible thing, folks who shopped for a home that they could afford, secured a mortgage, made their payments each month — they were hurt badly by the irresponsible actions of other people who weren’t playing by the same rules, weren’t taking the same care, weren’t acting as responsibly. By lenders who sold loans to people who they knew couldn’t afford the mortgages; and buyers who bought homes they knew they couldn’t afford; and banks that packaged those mortgages up and traded them to reap phantom profits, knowing that they were building a house of cards.
So which is it? Could those people afford that house or not?
Either way, these banks were FORCED to give these loans by the social do-gooders and this was one of the major reasons for the collapse in our economy, as Mata pointed out in her “US Economy – A “perfect storm” of housing and lending events” post.
But now we see the line of attack Obama will be using this election season. And what better foil does he have to use it against than a Mitt Romney?
It appears we need to focus on keeping the House and taking the Senate this election season, because we are going to get another four years of Obama.