Unlike 2006 and 2007, this is an economy that clearly would not be able to sustain another crisis. That is unfortunate since there appears to be another manufactured crisis on the rise. You might think the Obama administration would have learned that predatory lending, which is disguised as a “moral imperative,” was not a smart or proper role for the government. But alas, you can’t teach an old government new tricks.
The issuing of subprime mortgages, which is helping to keep us in this economic malaise, is apparently still good business to the people at the FHA. And business is booming! The Federal Housing Administration, over a 37 year period, has managed to smash the dreams of 3.2 million homeowners. Or, at least they were homeowners until they became a statistic in the 1 in 7 foreclosure rate the FHA can proudly boast.
Edward Pinto, from the American Enterprise Institute, characterized the FHA as “a tale of two cities.” Currently, over 40 percent of the FHA’s book of business is subprime lending. They are using the good loans they have on the books, which is less than 60 percent, to subsidize the failing subprime mortgages. Of course, it is not working. Aside from the Obama administration’s economic ignorance and reckless redistributionist policies, there are powerful special interest groups who vociferously oppose reforming the FHA.
For instance, NAR, or National Association of Realtors, says they “oppose any changes to FHA that will cause disruptions to the housing sector.” Naturally, they mean any change that will cause a disruption in the flow of dollars to their bank accounts. Yet, true to the liberal doctrine, they actually run ads like FHA Facts pretending as if they care about minorities and “responsible” first-time homebuyers. Thank god for liberalism. What would the poor minority communities do without them? Look at how well they are doing.
In a Pew Research Center study, they found that:
The median wealth of white households is 20 times that of black households and 18 times that of Hispanic households, according to a Pew Research Center analysis of newly available government data from 2009. These lopsided wealth ratios are the largest since the government began publishing such data a quarter century ago and roughly twice the size of the ratios that had prevailed between these three groups for the two decades prior to the Great Recession that ended in 2009.
Wait… What? And what pray tell is the cause of this first order human tragedy:
The Pew Research analysis finds that, in percentage terms, the bursting of the housing market bubble in 2006 and the recession that followed from late 2007 to mid-2009 took a far greater toll on the wealth of minorities than whites. From 2005 to 2009, inflation- adjusted median wealth fell by 66% among Hispanic households and 53% among black households, compared with just 16% among white households.
The recent study from the The National Bureau of Economic Research correctly identifies the lending practices outlined in the Community Reinvestment Act (CRA) by HUD, Fannie Mae, Freddie Mac, and FHA caused the financial collapse. IBD analysis of the recent study stated, “the federal government caused the problem and continues to distort the market by encouraging those who can’t afford homes to buy them and forcing banks to make loans that aren’t sound to low-income borrowers.”
Republicans would do well to start communicating to minorities that liberals are preying on them. Since Republican candidates and office holders alike, are obviously incapable of “down to earth” speak, allow me to demonstrate. Members of the African American and Latino communities, may I please have your attention?
Liberals could care less about you, your American dream, whether or not you can afford a home, feed your family, or if you have a job. They are preying on you and will make sure they make money whether you are homeless or not. They are corrupt and have been bought by other rich people, like the NAR, whom they will eat steak dinners with while they laugh at your expense. Literally!
Sitting next to them are your so-called “community leaders” such as race-baiter Rev. Sharpton, adulterer Rev. Jackson (his son is sorry he couldn’t make it but, he is prepping for his trip to prison for stealing your communities money), Los Angeles Mayor Villaraigosa (he is treating tonight with the extra money he stole from the L.A. road construction fund), and so on.
Liberalism personally offends me, and it would offend minority communities as well if we did our job. If you want power, then have the courage to say so instead of pretending you care about the human misery you purposefully cause.
Conservatives needs to get off their perches, and educate our fellow Americans in these communities. Even if we have to do so one-by-one. Considering how easy it is to win an argument when the truth is on your side, speaks volumes about the modern Republican image. Introspection anyone?
- Barack Obama’s ‘Fairness’ Economy Has Backfired (humanevents.com)