Here We Go Again: Obama Pushes Banks To Lower Home Loan Standards

Right out of the Clinton 90’s playbook that brought you the 2008 financial crisis:

 

Recently, White House Press Secretary Josh Earnest said the following: “One of the key legacy achievements of this presidency will be the important reforms of Wall Street. Those reforms have led to a financial system that is more stable and ensures that taxpayers are not on the hook for bailing out financial institutions that make risky bets.”

Evidently the Obama administration has a different definition of “risky bets”, and “taxpayers not on the hook” than most people, because as the Washington Post reports:

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.

… administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

It appears as though the US isn’t just competing with China for jobs and market share, but also to see who will be the fastest to blow up the global financial markets again.

Full article: Here We Go Again: Obama Pushes Banks To Lower Home Loan Standards (Zero Hedge)

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