Apparently democrats in Washington are suffering a total brain wipe in what crashed the mortgage crisis in 2009 which crashed our entire economy and are calling for banks once again to make lending to low-income individuals easier.
In democratland – making lending easier to low-income individuals means forcing banks to lend to individuals who cannot afford the size of mortgage they are seeking. In the current economy, housing prices are inflated plain and simple. Anyone arguing differently is a history revisionist.
Let me take you on a journey to the year 1994 when America’s favorite pervy vegan, Bill Clinton, was President of the United States. Billy had passed over 100 Executive Orders requiring banks to lend to individuals with risky credit and lending potential all under the auspices of making homeownership easier for minorities and low income individuals (boy did that turn out badly for those groups). Not only did he require it but he set quotas which banks had to meet lending in specific neighborhoods and to individuals with certain low-come profiles.
Quickly banks became crippled with high risk loans so Billy C instructed Freddie Mac and Fannie Mae to take on those loans to free the banks to make more to better meet their quotas. As this began to fail, Bill Clinton allowed for the first time in history for HUD and Freddie and Fannie to engage in subprime market swaps. They were engaging in subprime Wall Street gambling thanks to Bill Clinton all through 2008. The rest is history (for children who may be reading this the subprime market was completely worthless because obviously the low income individuals with loans couldn’t pay their mortgages and the homes weren’t worth what anyone had paid so the entire US economy crashed around this system and we didn’t really recover until like 2016).
So now somehow these same liberal organizations who lobbied Bill Clinton have re-emerged under new names calling for “affordable lending” as some sort of socially engineered justice tool to ensure lower-income individuals also can be strapped with inadvisable loans on overpriced homes. These economic Dr. Frankensteins seek to bring life back to the dead Fannie and Freddie and allow their monster to wreak well-meaning havoc on us all.
The reality is – and even liberal housing or economic development authority will agree – that the only way to combat the absurd lack of affordable housing in our country right now is more units. We need more houses to be built. We need more apartment units to be created where the new populations live. To do that, we need the price of supplies to go down. To do that we need our President to stop regulating or producers and distributors (like lumber and trucking) out of business. We need our President to free up access to land and help ease the burden of permitting. We need a more affordable labor force, not increased unemployment forcing laborers to stay home.
But instead we have sleepy Joe – who has still not performed the cognitive test required for the Presidency- clearly forgetting the very history he lived through and ready to repeat its bad decisions.
Buckle up, America. With Biden at the wheel, we’re about to crash.