"The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place. President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession." Washpost
Wait a minute... Wasn't one of the big problems in the housing crash debacle the Congress's insistence that banks should be encouraged to make loans to people who could not afford to make the payments?
The banks responded by doing that while supported along the way by Fanny and Freddy and then sold the loans to other paper mills that chopped them up into little bits that could be made into derivative securities. Those houses then sold these securities to all sorts of clients while simultaneously betting against the clients in the credit swap defaults markets. A further refinement was that the credit swap default market did not even care if the person taking out the "insurance" owned the security. That was a mouthful.
Now the Obamanoids are encouraging a re-run of this process? OK. I see. Social and political objectives trump financial common sense. Latinos and African Americans are a key part of the Democratic Party base. This is a pay-off for votes,
All this is interesting in the context of constant attacks by Democratic Party adherents in the media and the wonkery against Republican legislators who have the temerity to listen to their constituents on such the issues as gun law. pl