Building the next subprime crisis

September 28, 2010 16:20

President Obama and Democrats in Congress haven’t moved to stop subprime lending — they’ve just taken it over.

By STEPHEN B. MEISTER at The New York Post


They’ve created a federal subprime-lending monopoly by seizing control of the financial apparatus — Fannie Mae, Freddie Mac and the Federal Housing Administration — and lending 100 percent of the home price to borrowers who can’t afford it.

Since these two GSEs have cost the taxpayers $148 billion (so far), Reps. Spencer Bachus (R-Ala.) and Judy Biggert (R-Ill.) took their regulator to task over Affordable Advantage.

Baloney. Obama controls the GSEs — they were seized by Bush and placed in federal conservatorship; Obama OK’d $42 million in bonuses for their top brass last Christmas. They’re making subprime loans because the boss wants them to.

Testifying before the Senate on Thursday about when the FHA would meet the reserve minimum, FHA Commissioner David Stevens said, “a timeline would be the wrong way of approaching FHA reform” and could have “unintended consequences.”


Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

Interested In Further Reading? Click Here