Obama Torpedoes Economy
Forbes, FOX, Bloomberg, Congress – anyone? Do you see the pattern? America’s economy is not self-destructing, it is being dismantled. Amid bad unemployment numbers, high food and fuel prices, a devalued dollar, the already devastating impact of Obamacare on businesses and hiring, President Barack Obama is again pressuring banks to make bad housing loans to people with weak credit. Obama’s new push for substandard loans portends a repeat of the housing loan disaster that led to the 2008 crash that tanked the economy when the Democrats held full control of both the House and the Senate.
Obama’s policy of coercing banks to make questionable loans under-minds a still fragile U.S. economy and sabotages potential recovery. Zachary A. Goldfarb reports in the Washington Post that “…critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.” Ed Pinto, of the American Enterprise Institute and former Fannie Mae executive is quoted as saying: “If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from.”
To understand who and what originally sent the economy into a tailspin, details are laid-out in the article that I wrote on the topic, Bloomberg: DEMS Behind Housing Scam:
In regard to the devastating housing fraud that helped collapse the U.S. economy, a Reuter’s headline read: “U.S. Sues Bank of America for Alleged Mortgage Fraud.” According to Reuters, President Barack Obama’s Justice Department “filed a civil mortgage fraud lawsuit against Bank of America, accusing it of selling thousands of toxic home loans to Fannie Mae and Freddie Mac that went into default and caused more than $1 billion of losses.”
In reality, it is a prime example of President Obama and the Progressive Democrats’ adeptness at avoiding responsibility and deflecting blame. Democrats continue to elude culpability in initiating the housing collapse that thrust the economy into a nose dive. Liberals count on voters lacking enough information to connect-the-dots as they point accusingly at their partners-in-crime. Americans have been told by Obama’s sycophantic media that it was the fault of greedy bankers, mortgage brokers and Wall Street derivatives – some of which came into play once the set-up, the opportunity for greed baited the bad players into joint accountability.
The question the American people should ask is: Who were the masters of the economic collapse, the architects whose scheme worked so well that they virtually escaped the blame? Though they now deny it, Democrats led by Barney Frank (D-MA), Chris Dodd (D-CT), Maxine Waters (D-CA) and Greg Meeks, (D-NY) are on video, in effect, in support of glutting the housing market with unsustainable mortgages in the form of bad loans. Historically, it will go down as one of the liberal Democrats’ all-time big lies to the American people. In Capital, Azi Parbarah reported in 2011 that New York Mayor Michael Bloomberg pointed the finger squarely at the Democrat-controlled Congress as instigating America’s financial collapse:
“If there is anyone to blame for the mortgage crisis that led to the collapse of the financial industry, it’s not the “big banks,” but Congress. [They] were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent. They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it’s easy to blame them and Congress certainly isn’t going to blame themselves.” Bloomberg added, “It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp.”
What Bloomberg failed to mention is that Obama, himself, adamantly demanded that banks make more loans to low-income borrowers. Sub-prime loans became the great American rip-off. Obama and the Democrats strong-armed lenders to give loans to people who could not repay them. Grateful new homeowners were to then obligingly ply the Democrats with their votes.
The ugly and inevitable consequences forced the poor, mostly Hispanics and Blacks, out of their unaffordable homes through wide-scale foreclosures. Home prices fell, construction workers lost jobs, the housing industry began a free-fall and America’s AAA credit rating was downgraded for the first time since 1917. The result: The worst economy in recent memory. Today, America bears the brunt of the Democrats’ manipulation of the housing market resulting in lost homes, lost jobs, and a destabilized economy.
Obama is again pressurizing banks into questionable loans. The result will be déjà vu with a far worse ending. The administration may point to improved housing and stock markets, but both remain tenuous for the average American. The job market remains tentative and any veteran of the stock market knows that Wall Street is no longer in the hands of the Bulls and Bears, but the wolves.
Again, Forbes, FOX, Bloomberg, Congress – anyone? The captain of the Titanic did not have this much warning.
Sharon Sebastian is a columnist, commentator, author, and contributor to various forms of media including cultural and political broadcasts, print, and online websites.