This is astonishing.
There was an NPR program back in 2008 which attempted to explain the cause of the financial crisis. They went to the Republican convention and ask attendees what caused it, and the resounding answer was the Clinton mandate for relaxed lending standards for people with bad credit. The answer Democrats gave was the Republicans' deregulation of the banking industry. The conclusion on the government radio program was that they were both right.
However, Democrats must have missed the message, because now they seem to think the Dodd-Frank somehow caused the posibility of another lending crisis to disappear. WaPo has the story -- Obama administration pushes banks to make home loans to people with weaker credit.
Sure enough, lending standards are to be relaxed so that the ability to pay it off isn't that important. Don't worry, the government will provide a safety net if the loan goes bad.
That's insane. Really. If insanity is doing the same thing over and over expecting a different result, then that's insane.
Be cautious whenever someone says, "It's different this time." The difference this time is that there's a Democrat in the white house. And with a Democrat friendly media setting the news agenda, somehow it will all be Bush's fault.
Comments