July 27, 2012
On another misguided and intrusive federal initiative into the housing market…
The federal government is about to start the whole process again. Believe it or not, the federal government is now starting another initiative to force banks to loan money to low credit-rated blacks and hispanics -- not just anybody, but specifically blacks and hispanics. The government is threatening and already collecting huge punitive fines if they don’t do it, and moreover this time they’re going even further. They’re going to take over the credit-rating agencies and force them to change their standards to accommodate blacks and hispanics so that nobody will have any idea who is a bad credit risk and who isn’t. In other words, the government is about to impose its will on the entire home lending market again, and force another round of bad loans so that the banks are going to be looted once again, so that even the federal government may not be able to bail them out this time.