3 Apr

Obama pushes the housing market into full blown socialism

                                       

Obama-Socialism

Einstein is proven right again.

Not, not relativity.

Not the grand theory.

Insanity.

Einstein once defined insanity as

Doing the same thing over and over again and expecting different results.

Barack Obama is no stranger to hypocrisy and he clearly knows how stupid his base is. He knows they won’t remember anything he says from one day to the next. They certainly won’t remember what he said last year, so Obama zombies, pay attention.

Last year the Obama regime basically extorted a settlement from large banks in a mortgage deal. As noted by Investors, Obama blamed everyone except for the real culprits.

Subprime Scandal: Announcing a massive $26 billion mortgage deal with “abusive” banks, the president blamed everybody for record foreclosures except the party most culpable: government.

He blamed lenders:

Speaking Thursday from the White House, Obama scolded “irresponsible” and “reckless” lenders, who “sold homes to people who couldn’t afford them.”

he blamed buyers

He also cited buyers who bought homes bigger than their budgets,

and he blamed Wall St.

Wall Street bankers who packaged the shaky mortgages and traded them for “profit.”

And it was all wrong

“It was wrong,” he asserted. And now the nation’s “biggest banks will be required to right these wrongs.”

So whose fault was it really?

President Clinton fretted that blacks and other minorities could not qualify for mortgages at nearly the same rates as whites and Asians. So Clinton codified more “flexible” underwriting standards in a “Policy Statement on Discrimination in Lending,” and entered it into the Federal Register.

At the same time, he set up a little-known federal body made up of 10 regulatory agencies — the Interagency Task Force on Fair Lending — to enforce the looser standards. It threatened lenders to either ease credit for low-income borrowers or face investigations for lending discrimination and suffer the related bad publicity. It also threatened to deny them expansion plans and access to Fannie Mae and Freddie Mac.

“The agencies will not tolerate lending discrimination in any form,” the 20-page document warned financial institutions. The task force enforced these policies throughout the Bush administration.

According to Peter Ferrara, senior fellow at the Carleson Center for Public Policy:

“This overregulation reached the point of forcing lenders to discount bad credit history, no credit history, no savings, lack of steady employment, a high ratio of mortgage obligations to income, undocumented income, and inability to finance down payment and closing costs, while counting unemployment benefits and even welfare as income in qualifying for a mortgage.

“This” he said, “turned into government-sanctioned looting of the banks.”

The Justice Department — along with HUD, which regulated Fannie and Freddie — proved the most aggressive members of the fair-lending task force. Eric Holder, then acting as deputy AG, ordered lenders to actually “target” African-Americans for home mortgages they couldn’t otherwise afford. Obama cheered Holder on as an inner-city community organizer who also pressured banks to ease credit for home borrowers.

So what does Obama do in the wake of all this wrong doing? You’re not gonna believe it:

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.

Once again a democrat regime seeks to compromise mortgage underwriting standards.

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.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

Sound familiar to anyone? Other than Obama voters, I mean.

Obama just last year hammered the lending industry for $26 billion for making loans to people “who bought homes bigger than their budget” and now is seeking to provide assurances that repeating the same “reckless” behavior will go unpunished.

Unfreakingbelievable

tums

But don’t think for one moment that this is Obama’s first idiotic effort for housing. Last year Obama blasted Bank Of America with a $335 million dollar fine. BoA was fined for the actions of Countrywide, which BoA has purchased. The crime?

Not making enough risky loans.

Just days before Christmas, the Obama administration gave Bank of America a big lump of coal, levying a hefty $335 million dollar fine on the company for discriminating against minorities in its lending practices.

Supposedly Countrywide, a mortgage company bought by Bank of America in 2008, had not given out enough low interest rate loans to minorities from 2004 to 2008.

You know, when the mortgage crisis was in full bloom.

Countrywide was the whipping boy for the mortgage mess.

BOSTON, Oct. 11 — The Countrywide Financial Corporation, the nation’s largest lender and loan servicer, reported on Thursday that delinquencies and foreclosures in its portfolio were rising steeply. A few hours later, the company became a target of borrower anger in Boston as about 100 people gathered at three Countrywide offices to protest its practices.

If I gave you one guess as to who was behind those protests, I bet you would nail it. (Other than Obama zombies, I mean)

Thursday’s protest was the second this week organized by a borrower advocacy group and aimed at Countrywide. On Tuesday, ACORN, the Association of Community Organizations for Reform Now, organized a protest in eight cities.

Curiously, by September of last year buyers were no longer responsible for any of it. They’d all become “responsible homeowners.”

Responsible homeowners, Mr. Obama said, were plagued by “the irresponsible actions of others,” including lenders and buyers who were unrealistic about repayment options; speculators “looking to make a quick buck”; and banks “that packaged and sold those risky mortgages for phony profits.” And “When the party stopped, and the housing bubble burst,” Mr. Obama continued, “it pushed our entire economy into a historic recession – and left middle-class families holding the bag.”

Not everyone should own a house. Obama’s track record with that is pretty lousy.

President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.

As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.

The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama worked on as an attorney for the lead plaintiff.

But Obama is not stupid. There is a motive for this and it’s called redistribution of wealth. Obamacare has nothing to do with health care. It is redistribution. Any and all of Obama’s mortgage and housing efforts are also redistribution.

These risky loans will certainly fail once again and the burden will once again be dropped upon the heads of the taxpayer.

Full blown socialism.

In 2011 at Osawatomie, Kansas, Obama had this to say:

Now, in the midst of this debate, there are some who seem to be suffering from a kind of collective amnesia. After all that’s happened, after the worst economic crisis since the Great Depression, they want to return to the same practices that got us into this mess.

Indeed.

If it’s a day ending with a “y” Barack Obama is again proving just how stupid and amnesic his supporters are.

Work hard. Be financially responsible. Don’t take on more than you can pay. Pay your mortgage. Pay your bills.

And in Obama’s Amerika your reward is to pay for everyone who doesn’t do any of that.

About DrJohn

DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education. DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed. Except for liberals being foolish.
This entry was posted in Anti-Americanism, Culture of Corruption, Deception and Lies, Disasters, Economy, Liberal Idiots, Obama Euphoric-Rapture Syndrome, Obamanomics, Uncategorized, WtF? and tagged , , , , , , , , . Bookmark the permalink. Wednesday, April 3rd, 2013 at 11:56 am
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16 Responses to Obama pushes the housing market into full blown socialism

  1. MOS 8541 says: 1

    OK!

    Recall recent history and the bank failures in Chi., in the mortgage crisis. Well, the piece of cr$$ was one of the lawyers that pushed bankers to issue loans to low-income families for houses they could never afford. This piece of cr$$ would threaten bankers that if they did not give loans the race card on equal lending would be pulled.
    This is the same bull he pulled in Chi as a never barred lawyer..Cr$$ has never been barred in any state.
    Recall history..this conduct will bury the banking industry and we will need another bailout.
    Ask bankers in all states, this stong arm mentality to lend money to lowincome familes had been going on for over a year-under the table.
    Have a banker that is sitting on over 260 “bad loans”.

    ReplyReply
  2. J Palmeri says: 2

    Cuomo? Cuomo? Oh yeah the same guy that’s Governor of New York State. A conspirator in the meltdown of the mortgage industry in 2008. As usual he has risen to the height of his inadequacies as Governor.

    ReplyReply
  3. John says: 3

    ‘Full blown Socialism.’ Lol! You crack me up!

    ReplyReply
  4. FAITH7 says: 4

    Yep, and who has been squawking now and forever… the last housing bubble was “all Bushes Fault”?? Fatso Barney and friends had no say whatsoever?? Huh?? Oh, yea, except to say Frannie/freddie was ‘solvent’…

    Oh, yea, that’s right…it has been the Democrat turned Socialist/Communist Party doing all the moaning and pizzing about that….now the Democrat turned Socialist/Communist Party are back to the insanity of this ‘failed’ ideology, failed utopia…AGAIN!!… still trying to push an ideology… that never will work…

    …They are still trying to push that square peg into that round hole…

    I seriously wonder what planet I am on…

    ReplyReply
  5. Pingback: Obama pushes the housing market into full blown socialism » ConservativeWatchNews.org

  6. Richard Wheeler says: 5

    @John: John Note Faith7 in #4 ups the ante to Communist– and the far right wonders why they continue to lose and are considered “crazed” by a substantial majority of American voters. I too wonder what planet she is on.

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  7. Smorgasbord says: 6

    I’ve said it before. The obama administration knows that they don’t have to fool all of the people all of the time, just enough of them to get elected. They are obviously going for the poor vote again. It worked the last time they made the banks make loans to people who couldn’t keep the payments up. Why wouldn’t it work twice?

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  8. Mully says: 7

    @Richard Wheeler:
    On your planet what caused the housing mess we experienced in 2007 – 2008?

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  9. DrJohn says: 8

    @Richard Wheeler: Obama has identified himself as a “progressive.” The Communist Party USA also describes itself as “progressive.”

    “The Communist Party has an unparalleled history in the progressive movement of the United States . . . .”

    It’s sort of like the difference between “global warming” and “climate change.”

    Which is say, there ain’t none.

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  10. john says: 9

    Better take a look at that calendar again The housing bubble inflated under Bush not Obama. By the time Obama came in end of Jan. 2009 the damage had been done. And as for the redistribution of wealth, it has been done with the top 1% getting more and everyone else getting less. The banks and Wall Street love Obama. They are making record profits. The Dow is smoking hot, setting new highs all the time. Will the Dow suffer a correction ? certainly. When? unknown.
    As for Communists !!! hiding under our beds and scaring children and making them have nightmares, well that just makes most Americans smile. On the list of America’s greatest fears, Communists!! must be very close to the bottom.

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  11. drjohn says: 10

    @john:

    Seriously, are you like ten years old? Do you have any long term knowledge?

    Clinton deregulated banks
    Clinton made predatory lending legal
    Clinton refused to regulate derivatives
    Clinton pushed Fannie to 51% subprime mortgages

    And democrats like Franklin Raines and Penny Pritzker got ginormously wealthy off of it.

    The crisis was set in motion well before Bush took office. The house of cards came down when the economy slowed and democrats screamed that there was no crisis at Fannie or Freddie and blocked all efforts at reform.

    Fannie is STILL too big to fail today.

    ReplyReply
  12. johngalt says: 11

    @john:

    And as for the redistribution of wealth, it has been done with the top 1% getting more and everyone else getting less.

    From 2007 to 2009, the top .1% lost income shares(from 11.93% in 2007 to 7.8% in 2009). The top 1% went from 22.83% to 16.93%. The top 5% went from 37.44% to 31.72%. The top 10% went from 48.05% to 43.19%.

    During that same period of time, the bottom 50% of wage earners gained income shares, from 12.26% to 13.48%. The groups between 10-25% and 25-50% also gained shares of the income pool.

    Data can be found here, about midway down the page;
    http://taxfoundation.org/article/summary-latest-federal-individual-income-tax-data-0

    In addition, that same phenomena happened during the dotcom bust, the recession in 91/92′, the recession in 89′, and the recession in 80-81′.

    Rhetoric can only be useful up until the point that it is found to be false. Your rhetoric is false, therefore, it is useless. You might want to actually educate yourself on the facts and data before you regurgitate whatever it is you’ve found on the progressive rags dotting the landscape.

    Your rhetoric from above is semi-accurate, if you are talking about income shares per group, and if you are talking about over time. However, it falls apart once you start looking at points in time, as well as actual income itself (which grows for everyone, assuming that the economy itself is growing).

    Also, when you start adding regulations and taxes to the equation (of income disparity), you make the rate of increase in disparity worse, as those who have, also have the connections and monetary influence to avoid the excessive penalties, or the influence to cause neat little exemption holes to hide in in whatever legislation occurs that is claimed to address the problem. In effect, demanding that the government do more to address this problem, or any problem, ends up making the problem worse, or perpetuating it, and demanding future action to address it, which, of course, won’t address the actual problem.

    More government is never the answer. It has never been the answer. It never will be the answer.

    ReplyReply
  13. retire05 says: 12

    @john:

    Better take a look at that calendar again The housing bubble inflated under Bush not Obama.

    Of course, being the low information voter you are, you simply can do nothing but parrot the talking points put out by your handlers. Unfortunately for you, some of us are fully aware of who was responsible for the mortgage meltdown and the collapse of our economy and it wasn’t George W. Bush who warned, many times, that the GSEs were in dire trouble.

    “After the warm and fuzzy glow of “flexible underwriting standards” have worn off, we may discover that they are nothing more than standards that led to bad loans. Certainly, a careful investigation of these underwriting standards is in order. If the “traditional” bank lending processes were rational, we are likely to find, with the adoption of flexible underwriting standards, that we are merely encouraging banks to make unsound loans. If this is the case, current policy will not have helped its intended beneficiaries if in future years they are dispossessed from their homes due to an inability to make their mortgage payments. It will be ironic and unfortunate if minority applicants wind up patying a very heavy price for a misguided policy based on badly mangled data.”

    Professors Day and Liebowitz, 1998

    So tell me, John, who was president in 1998?

    And as for the redistribution of wealth, it has been done with the top 1% getting more and everyone else getting less

    And like all low information voters, you have this conception that the 1% sit on their money, hiding it under their beds, like Scrooge McDuck. Unfortunatly, idle money does not create increased weath. In order to create increased wealth, money must be put to work and by doing so, it creates more businesses which in turn creates more jobs.

    The Dow is smoking hot, setting new highs all the time.

    Ironically, the DJIA is tracking almost identically to the same track it took prior to the 1929 market crash.

    As for Communists !!! hiding under our beds and scaring children and making them have nightmares, well that just makes most Americans smile.

    You seem to think that if somone changes what the call themselves, their goals no longer exist. You can be told that a politician is a “progressive” and you don’t seem to be able to equate that with being a communist. I suggest you research the Congressional Progressive Caucus, started by self-proclaimed Socialist (with a capital S) Bernie Sanders. Take a look at the list of names on that caucus, including Maxine Waters who said, in referring to herself, “this Socialist.”

    You are more than welcome to watch the YouTube video of Barney Frank declare the GSEs wee in great shape. Sadly for the unintelligent Frank, the GSEs were in terrible shape, and under his guiding hand, no less. The warning bells were ringing and all Frank could say is “it’s racism.”

    Obama wants to do, once again, the very thing that caused the housing melt down in the first place. Unless we abolish the Community Reinvestment Act, and go back to standard lending practices, which lending agencies are trying to do, we are facing another housing boom, and consequently a housing bust.

    ReplyReply
  14. johngalt says: 13

    @Richard Wheeler:

    Someday, Rich, I’m hoping that you wake up to the fact that your beloved Democratic party has been hijacked by the Progressive crowd whose end goal is, in fact, some sort of socialistic ideal. The kind that has failed throughout history to provide the “perfect” society they all dream about.

    Now, I don’t know that Dr.J is correct in equating Obama’s housing push to “full blown socialism”. I suspect that he isn’t. I do believe, however, that Obama’s housing push is simply a stupid attempt at re-invigorating a stagnant economy, doing the same thing that, at the very least, helped to build the housing bubble to a point that it burst.

    Do you really think that the Dodd-Frank bill did anything to address the problems that arise from handing out loans to people who shouldn’t have them is pursued? Do you think that the Dodd-Frank bill took into account the added strain on the economy from Obamacare? From a Congress that is unwilling to reign in it’s own spending, weakening the dollar as the Fed is printing off new bills just to keep the government afloat a while longer? Do you think it took into account the meteoric rise in the average person’s cost of living due to energy policies from this administration?

    In my view, Obama pushing this housing initiative again at this time brings to mind the adage that “stupid is as stupid does”. If you support that, then you can wear the sign along with Obama.

    ReplyReply
  15. Smorgasbord says: 14

    @john: #9
    No president is to blame for the housing bubble. congress mandated that the banks would loan money to the poor, and even some without a job. Now, obama wants to do it again.

    obama is treating the USA like a car that won’t start. He keeps turning the key, but the car still won’t start. Eventually, the battery will be dead, but obama will figure recharging the battery will fix the problem.

    ReplyReply
  16. J. Palmeri says: 15

    Tom Fitton wrote:
    Documents Uncovered by Judicial Watch Show Congress Ignored Corruption at Fannie Mae and Freddie Mac for Years.
    Barney Frank and his liberal allies in Congress have more explaining to do.
    Any way you slice it, liberals in Congress were reckless when it came to the massive taxpayer liabilities related to Fannie Mae and Fannie Mac and they should be held accountable for it.
    Eric Holder Playing Politics at Justice Department:
    With legislation pending before Congress that would give a representative elected by voters in the District of Columbia a full vote in the House of Representatives, Attorney General Eric Holder asked Justice Department lawyers in the Office of Legal Counsel (OLC) if the legislation would withstand the constitutional test. Holder, a D.C. resident who supports the measure, didn’t like the answer he got from the Obama-appointees at the OLC. So he improperly asked another office — the Solicitor General’s office.

    http://www.judicialwatch.org/press-room/weekly-updates/14-scandal-obama-justice-department/

    ReplyReply

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