Obama, Housing and the Next Big Heist

Picture: The Truth About (CC)

Mike Whitney writes at Counterpunch:

For those who missed President Obama’s latest giveaway to the Bank Mafia, we’ll repeat what he said here. This is an excerpt from Tuesday’s State of the Union Speech:

“Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.

But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow.”

First of all, whenever you hear a politician talk about “streamlining the process”, run for cover. The term is a right-wing formulation that means “remove all the rules which inhibit profitmaking”. Naturally, Wall Street’s favorite son, President Hopium, is more than comfortable with the expression and uses it to great effect. But what are the rules that Obama wants to eliminate, that’s the question?

Obama answers that himself when he says: “Too many families with solid credit who want to buy a home are being rejected.”

This is pure baloney. Borrowers with good credit who can meet the standard down payment requirement (usually 10 percent) can secure financing without too much trouble. The problem is that the banks don’t want to be limited to creditworthy applicants alone, because there aren’t enough creditworthy applicants interested in buying a house. That’s why they want Obama to loosen regulations on “government insured” mortgages so they can lend money to anyone they want knowing that Uncle Sam will pay the bill when the loans go belly-up. That is what this is all about; Obama wants congress to slap their seal of approval on a new regime of crappy loans that will eventually be dumped on US taxpayers. …

Read more here.

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  • Grumble Guy

    Isn’t that exactly what caused the 2008 collapse?

  • Grumble Guy

    Isn’t that exactly what caused the 2008 collapse?

  • Juan

    Fuck, man, there is no longer even any pretense of . . . um, I dunno, accountability, responsibility, ethics, social contract, you know, all that pointy headed liberal shit from the enlightenment. I guess they bad for bidnez.
    They’re just ass-raping us all stupid with the lights on, broadcasting it everywhere; and that seems to be perfectly acceptable. Right, ok then . . .

  • InfvoCuernos

    Ya, go ahead and “buy” that home that the bank will actually own, and then you can drop any pretense of being free and every penny that doesn’t go to your Land Lord will go to the government in tax. Fucking serfs. How long before the Lords will be collecting taxes for the government?- Oh ya they have the corporations doing that now. Most people are so disconnected from their taxation they get excited when they get their meager little “refund”-nevermind that it was their money in the first place and the government held and used it interest-free throughout the year.

  • IokSotot

    A long-time acquaintance of mine that works IT in a London Hedge Fund says the boys he works with are very excited about the US housing market. Get in there before its too late he said.

  • http://www.zoboprepublic.wordpress.com/ zobop republic

    We keep giving the thieves the keys to our homes!
    When are we/you going to learn? STOP!

  • kowalityjesus

    You can believe anything coming from the mouth of that fiend. That fake Wisconsin accent will lull anyone into a false sense of security.