Recently I read where FHA Chair, Mel Watt, has proposed another round of subprime lending (http://nypost.com/2014/11/16/watt-wants-to-slash-city-homebuyers-down-payment/), with lowering the downpayment for a home to 3%. The very SAME subprime lending that triggered the mortgage meltdown of 2008.
IF this administration had cared ANYTHING about the economy, they’d have reinstituted Glass-Stiegal, broken up these HUGE banking, brokerage and insurance conglomerates and ended, by OUTLAWING subprime lending. It COULD HAVE done ALL of those things (it had a Democratic House and Senate its first two years), but didn’t...because it didn’t care.
Andrew Cuomo (back in 1998, as head of HUD) once called subprime lending, "Affirmative Action in lending," which it is, as it puts HIGH RISK (unqualified) lenders/workers into positions they don't have the means to pay back, or the skills to accomplish. That's NOT a particularly comforting analogy. (https://www.youtube.com/watch?v=6JPraGHh-rM)
So, there’s your proof (if any was needed) that “Joe the Plumber” (Samuel Joseph Wurzelbacher) knew more about the American economy than John McCain AND Barack Obama!
I guess the first implosion worked so well, what with the huge bank and BIG Business bailouts, the massive mortgage relief and the subsequent skyrocketing unemployment and lower wages, that those politicians NOT named Samuel Joseph Wurzelbacher can’t wait to try it again.
Looks like the Federal Reserve needs a plumber...fast!
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