Monday, June 11, 2012

Barack Obama was Instrumental in Setting the Stage for the Housing Crisis

Well isn't this interesting?  It seems that in one of the landmark cases which really set up the housing bubble, Barack Obama was listed as the lead lawyer for the plaintiff, one Selma Buycks-Roberson.  The article is long, but well worth the read.

The most important take away, however, was that as Barack Obama was engaging in demagoguery over "predatory lending," he had played a vital roll in establishing that practice.  As late as the early 1990s, sub-prime mortgages were difficult to obtain, had much higher interest rates, and were generally designed to dissuade the borrower from making a home purchase at all.

However, because of the settlement won by Barack Obama, and the law firm for which he was working, as well as others along the same lines, banks began loosening their lending policies.  Where, once, sub-prime mortgages were only for people who could probably pay back the loan, but didn't look like it on paper, they became a channel for "fairness."  To reduce their now greatly increased risk, the banks began trading mortgages: that is, the dreaded "credit default swaps."

So, despite all his claims about the "private sector," "big banks," and "predatory lending," it was the "economics as instrument of social justice" policies of Liberals like Barack Obama which were directly to blame for the crisis which came to a head in 2008.  For all his caterwauling about banks "throwing people out of their homes," it was he, and his compatriots, who were most responsible for the mess.

When Barack Obama talks about the ills of the private sector, or greed, or "predatory lending," remember this: He helped create the very environment which made those practices not only possible, but preferable.  Barack is no champion of the little guy, he's a shark-toothed predator who is more than willing to use the middle and lower classes as pawns in his quest to destroy private equity, and further empower the Government.

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