Webster

The Constitution was made to guard the people against the dangers of good intentions." --American Statesman Daniel Webster (1782-1852)


Tuesday, July 12, 2011

Here we go again....

What is the Defination of insanity:
Doing the same thing again......and expecting different results........
They are never going to learn.....
U.S. Department of Justice photo
U.S. Department of Justice
I’ve been through this routine before … I’ve gone to great lengths to explain how the Community Reinvestment Act led to our housing crisis, which led to our current economic woes.  For a quick recap: The Community Reinvestment Act was based on the brilliant idea that government would require financial institutions to lend to unqualified borrowers.  Knowing what you now know about how this government mandate led to our financial collapse,
You should be outraged when you read this.
In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.
Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says.
Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting "public assistance" as valid income in mortgage applications.
If we can take anything from our current state of economic misery, it could at least be a lesson in how not to let it happen again.  But this is what you get when you have an administration that does not understand what got us here in the first place (government mandates), nor how to fix it (more government spending and mandates).  Instead, this administration insists on blaming Wall Street, fat cat bankers and the evil, filthy disgusting rich who are flying around on their private jets

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