Home » Opinion » Editorials
Obama, bank president: Home loans by decree
Here is how The Washington Post summarized the Obama administration's new plan: "Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.
"Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan..."
The faith this President places in his ability to manipulate the economy just so is breathtaking. Surely there are many Americans with credit scores below 700 who are financially trustworthy. Why are banks not lending to them? Because after the crash the administration got tough with banks, holding them accountable for foreclosures, and demanding tougher lending standards. Now, banks scared off by the heavy hand of Obama and the then-Democratic Congress are told to relax, lend more, and they won't be held responsible for the consequences - which will be insured by the federal government.
Perhaps that will work out just fine. If not, though, whom do you think Obama and Congress are going to blame? Bankers know. They also know that no matter what course they choose, they are at Obama's mercy. Don't lend, and get attacked for being greedy and uncaring. Lend to riskier borrowers, and get blamed if anything goes wrong. This is what it is like to do business under this President. Is it any wonder that the economy continues to struggle?
READER COMMENTS: 0
- Thomas Sowell: Fraudulent stats behind 'equal pay' claims - 0
- Jonah Goldberg: The left's arrogant groupthink - 0
- Rep. Adam Schroadter: Penalties for marijuana use in NH should fit the crime - 10
- Pat Buchanan: What would Reagan do with Russia, Syria, etc.? - 6
- Deroy Murdock: Wisconsin's Scott Walker calmly leads the way - 4
- Another View - Pam Hunt and Loren Valliere: Local steps can fight climate change in NH - 20
- Another View -- Nick Pappas: NH teens, young adults will be hurt by a minimum wage hike - 7
- Another View -- Michelline Dufort: Consumers would save if PSNH sold its power plants - 0
- Fergus Cullen -- Innis: school to business to Congress? - 6
READER COMMENTS: 0
- Flooding closes roads in northern NH - 0
- NHIAA Boys' Track Preview: Jenkins paces defending champ North - 0
- NHIAA Girls' Track Preview: McCabe, Parker lead way - 0
- Manchester DPW chief says up to 20 layoffs possible with proposed budget - 7
- Ian Clark's On Hockey: O’Neill’s injury leaves offensive void - 0
- Allen Lessels' On Baseball: No doubt about it, Fisher Cats still confident - 0
- Another View -- Bobby Jindal: NH should trust parents to choose schools - 1
- Taxes and spending: Washington vs. NH - 2
- Texting while stopped: Banning safe behavior - 1
Manchester settles with federal civil rights agency over minority students in advanced courses
Taxes and spending: Washington vs. NH
Texting while stopped: Banning safe behavior
Manchester mayor: 'It's the tax cap budget'