Friday, March 28, 2008

Playing the mortgage Blame Game

The Dem candidates' proposals will just make the problem worse.

Let me see if I understand this.

In the recent past, the government hounded the mortgage industry for "red-lining", and"discriminating" against people who normally would not qualify for credit.

Got it.

Yet now these same people have been astounded by the advent of this "crisis", and are impatient to crucify the lenders for making loans to people who shouldn't have been approved.

They want to "solve" a problem they helped create through regulation by enabling even MORE regulation.

Yeah, that's the ticket.

The sad part about all of this is that the bleeding heart contingent sees absolutely nothing wrong with this sort of thing.

Yet another example of how the "solution" becomes worse than the "problem".

4 comments:

  1. In the recent past, the government hounded the mortgage industry for "red-lining", and"discriminating" against people who normally would not qualify for credit.


    I believe that may have been during Jimmy Carter's disastrous time in office was it not?

    The problem as I see it is the subprime mess isn’t a result of discrimination. If anything, it’s the result of too little discrimination by lenders too willing and eager(and greedy) to sign on people who had no business even getting a mortgage.

    Propping up bad loan prospects will only yield more bad loan prospects.

    Now that's jus my sayin!

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  2. "If anything, it’s the result of too little discrimination by lenders too willing and eager(and greedy) to sign on people who had no business even getting a mortgage."


    I get a kick out of all those who want "transparency" in the mortgage/housing/credit markets as a result of this situation.

    This "housing bubble" and the underlying financial assumptions have been out there in plain view for MANY YEARS, and have been discussed at length among those who are knowledgeable.


    Yet there's been no great rush to introduce new regulation.......until now.

    Memo to those who are advocating all sort of new government control over this situation: It's more than just a little like closing the barn door after the horse has escaped.

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  3. Obama of course immediately came up with a plan to cure the ills and claime that McCain would only sit around and watch it get worse. I found it comical!

    The Patriot Post had this to say about the Dems plan to boost the econmy etc.

    Democrats propose more government for economy

    On Thursday, Barack Obama declared that the government isn’t doing enough to, er, for the economy. Indeed, the only change he wants is what’s in taxpayers’ pockets. Obama called for $30 billion, as the Associated Press put it, to “rescue homeowners and the jobless.” Peddling the Democrats’ usual victimitis rhetoric, Obama said, “For homeowners who were victims of fraud, I’ve also proposed a $10 billion Foreclosure Prevention Fund that would help them sell a home that is beyond their means, or modify their loan to avoid foreclosure or bankruptcy.” In other words, because borrowers bought homes that were too expensive, other more responsible taxpayers should be forced to bail them out. This forcible redistribution of income is what liberals call compassion. Of course, Obama also derided GOP presidential candidate John McCain for a plan that “amounts to little more than watching this crisis happen.” McCain fired back, “There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face.” But isn’t it good intentions that matter?
    Speaking of intentions, the Clinton campaign immediately went on the attack, claiming that Obama has raised more than $1.18 million from employees of 10 major sub-prime lenders. The implication is of course that Obama owes favors to sub-prime lenders. If that’s the case, Hillary’s fundraising total from the same companies might be relevant. That total is $1.32 million. According to The Wall Street Journal, “Adding up donations from mortgage companies, banks, private-equity and hedge-fund firms—all industries involved in subprime lending—Sen. Clinton has drawn $2.8 million in donations, compared with $2.67 million for Sen. Obama and $1.28 million for Sen. McCain.” Oops again, Hillary.

    Again all the credit for the insert goes to Mark Alexander of the Patriot Post. Mark is as usual on top of things and not letting the left get away with their usual game playing.

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  4. Peddling the Democrats’ usual victimitis rhetoric, Obama said, "'For homeowners who were victims of fraud, I’ve also proposed a $10 billion Foreclosure Prevention Fund that would help them sell a home that is beyond their means, or modify their loan to avoid foreclosure or bankruptcy.'

    In other words, because borrowers bought homes that were too expensive, other more responsible taxpayers should be forced to bail them out."

    SSDD.

    Only a small minority of borrowers were victims of fraud.

    However, many of them were a victim of greed....their own

    ReplyDelete