Posted on 04/09/2013 10:03:10 AM PDT by Starman417
There’s something macabre about an imminent train wreck, you know exactly what is coming but you can’t help but watching. Now imagine that instead of watching that train wreck from atop a building a safe distance away, you’re standing right between the train and the tanker truck that has stalled on the tracks. That’s a different story all together. At that point, rather than being a mere fascination it’s a matter of life or death. You’ve seen the damage a train wreck can do. That’s why it was fascinating in the first place. The difference now of courses is that when that giant mushroom cloud of smoke goes up, you’re going to be part of it. So, just as instinct kept you looking at the train in the first scenario, in the second one it causes you to turn and run as fast as you possibly can. If you can only get far enough away, you can avoid both the explosion and the crushing impact of one of the derailed cars rolling over you.
Well, you might want to think about running in real life, but it has nothing to do with train tracks or tanker trucks. It has everything to do with Barack Obama and the left’s train wreck of economic policy.
As virtually every conscious American knows, the United States economy took a body blow in 2008 with the financial collapse. Despite what anyone tells you, the collapse was 100% the product of government policies stretching back to Jimmy Carter and doubled down on by Bill Clinton. That policy, in a nutshell, was called the Community Reinvestment Act. The act “encouraged” banks and mortgage lenders "to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions." Essentially, banks were being forced to make loans in the communities in which their depositors lived.
Now, think about that. People put their money in banks in order to save it and maybe grow it a little bit. They want more security than what they might get by putting the money under their mattresses. Now, the government comes along and says that banks, rather than lending money in the safest and most profitable manner possible, must lend in particular neighborhoods, regardless of the opportunity to do so profitably.
But of course the government didn’t stop there. They then decided that banks were not making enough home loans to minorities and decided to force them to do so. So now, banks, not only have to lend in certain neighborhoods, but they have to make loans to certain people, regardless of their creditworthiness. By 2005 fully 22% of new mortgages had to be “special affordable” loans targeted at low income buyers.
Banks of course complied, with a wide variety of special loan products from zero money down to ARMs and no income verification. And just to make sure that banks were making the loans, the government, in the form of Fannie Mae and Freddie Mac were assuming the risk by buying the mortgages. If that sounds like a disaster in the making… it was. The resulting financial collapse saw the evaporation of trillions of dollars of citizens’ savings and investments, not to mention sending the economy into a recession.
The government essentially manipulated lending data and created a financial train wreck and we were all forced to stand by and watch the whole thing. Thankfully most people avoided getting immolated in the flames, even if their hair and clothes got a little singed along the way.
(excerpt) Read more at floppingaces.net...
Actually, 0bama (or more specifically, his handlers) did learn from history - that’s why they’re trying to resurrect sub-prime mortgages.
What history?? The train IS STILL WRECKING as we FReep.
It just blows my mind that Obama wants to re-ignite the mortgage crisis that devastated our economy. Check that. He wants to re-ignite the mortgage crisis that IS STILL DEVASTATING our economy.
FUBO!!!!
I suppose when Washington DC gets through with this sub-par mortgage FUBO/FUBAR, and the mortage and home buying industry is further down the toilet than 5 years ago, Barry will happily blame the banks and Wall Street again.
FUBO!!!! again.
In the 1930’s people paid to see train wrecks now there free,can’t get more progressive then that.
this is how they confiscate your money in thebank.
when these and thestudent loans explode depositors will take a haircut because the public isn’t for anymore govt bailouts.
This time they won’t force people out of their houses. “The government” will pay their mortgage. They’ll get section 8 on houses that are in their name.
I hope the banks resist. It’s time for civil disobedience. Seriously, who wants to go along with this Administration and have another financial disaster? It’s time to tell the President no!
So, they just need a little bit more to push the country over the edge, to destroy the US financial system, and be able to take over the banking system (and you can bet all the investments too). At which point, the federal government will control health care, housing, finances, and student loans. Effectively turning us all into slaves to the federal leviathan.
Mark
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