Thursday, April 4, 2013

Obama Calls for the Return of Predatory Lending

After excoriating the banking community for the past five years for making loans to Americans with less than stellar credit, Obama has now reversed course.  This week, Obama has now called for banks to return to the bad old days -- lending to people of modest means.

What has been considered a crime by the Obama folks for the last five years is now their latest policy initiative.  With the taxpayer, of course and as usual, as the guarantor.

Instead of letting the free market decide who gets to borrow and at what rates, which would avoid the booms and busts of the past, Obama is following his tried and true instincts.  Only he knows what is best -- not the markets.

But banks have learned their lesson.  Why loan to folks that might not pay you back, regardless of who the guarantor is?  The banks now know that they will be accused of predatory lending when these loans go sour.  By that time, Obama will be resting comfortably with his millions in Hawaii.  What does he care?

Once again, an administration with nothing but contempt for free markets, has demonstrated their ignorance and their duplicity.  At least, finally, they appear to realize that strangling the financial community has consequences.  Witness the stagnant economy of the Obama years.

Don't expect banks to rush forward to put their neck in the noose once more.

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