In the Sherlock Holmes book, “The sign of the four,” Sir Arthur Connan Doyle penned a line for his great detective. “How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?”
Conservatives have railed for years that Barack Obama and the Democrats are not simply wrong. They are not simply bad managers. They are not simply incompetent.
Conservatives have said that Barack Obama and the Democrats want to bring down the economy.
Now the actions of the Obama regime have gone to the point where Americans can eliminate the impossible options. It is impossible that the regime simply has a case of bad management. It is now impossible to say they are merely incompetent or wrong.
The regime is now pushing for rules and regulations that will relax borrowing standards for people with poor credit ratings and poor credit history.
Does anyone remember the mortgage meltdown of 2008?
Subprime loans, pushed by Democrats in Congress, created a housing bubble that burst and that helped drive the nation into the Great Obama Depression.
But this only gets worse. Most American mortgages come through entities known as Fannie Mae and Freddie Mac. These are government sponsored entities. That is a nice way of saying the government takes all of the risk. And when the bottom falls out, the only people who pay the price for this dramatic failure is the American taxpayer.
One of the biggest problems in the housing market failure was the practice of offering loans with no down payment. Now the Federal Housing Finance Agency, an agency created by the government after the housing bubble, is promoting regulations that will allow home purchases with a 3 percent down payment.
How long before that goes back to no money down?
One of the other problems is that the FHFA is also complaining that banks are lending to people with poor credit scores.
Gee, who would have thought a bank might have reservations about extending credit to someone with a history of not paying?
Banks objected to some of these loans but now the FHFA is offering assurances that lenders would not be on the hook if these loans went bad.
What a deal for banks! They can make loans and if the loans pay off, they make a profit. If they don’t pay off, the government covers them.
Most people learn from their mistakes. Sane people realize, making the same mistakes they did in the past is going to lead to the same result.
But that is the real issue here.
Why would the Obama regime want to repeat the same mistakes of the past?
When you eliminate the impossible, that which remains, no matter how improbable, must be the truth.
Does anyone really believe the Ivy League-educated MBAs in the Obama regime do not know what will happen when the lending rules are weakened and the government guarantees every loan?
They know. It will create another housing bubble that they hope will burst in the middle of a Republican administration.
Republicans in Congress can stop this insanity.
The question is, will they?
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