Do you know what I like to do?
I will tell you.
I like to bang my head against the wall. And then, when it starts to hurt, I like to bang it some more. And then, when my skull cracks open and my brains fall out, I like to pick them up off the floor – three second rule applies here – and put them back in. And then?
That’s right. I like to bang my head against the wall some more.
I was reminded of this yesterday when I read the following headline in the Washington Post:
Obama administration pushes banks to make home loans to people with weaker credit
Thats what it said.
AS IF NOTHING EVER WENT WRONG THE LAST TIME WE TRIED THIS.
There’s no mystery to the current fix we’re in. Liberal policymakers – with the acquiescence of some Republicans and the benign neglect of others – decided it was beneath the dignity of people who can’t afford homes not to have them. And so they incentivized irresponsible lending by providing guarantees – AKA Fannie and Freddie Mac – that taxpayers will pick up the tab when the inevitable result of lending to people who can’t make their loan payments occurs.
But some people – me included – like to keep banging their heads against the wall. From the article:
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.
Awww. This is really breaking my heart. Now young people already hanging out on their parents’ health insurance, after partying through their federally subsidized college years, must have a house of their where all their friends can come over and watch “Two and a Half Men” together without the landlord getting pissed off.
And who are these individuals with credit records weakened by the recession? Sounds to me like PEOPLE WITH BAD CREDIT. I can hear the loan interview:
Q Was your credit weakened by the recession?
A What? Yes, of course, the recession did it.
Q Great. Sign here.
The Post piece continues:
“If you were going to tell people in low-income and moderate-income communities and communities of color there was a housing recovery, they would look at you as if you had two heads,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit housing organization. “It is very difficult for people of low and moderate incomes to refinance or buy homes.”
OMG, then I would have TWO HEADS TO BANG AGAINST THE WALL. Pure heaven.
So let me translate this. This person is angry because people who don’t have enough money to buy homes can’t buy them.
You know, low and moderate income people are also being left out of the Lamborghini market. I say, let’s give them Lamborghinis too!
Banks WANT to lend money. That’s how they make money. Not by sitting on their cash like a bunch of financial finches warming their eggs. But they don’t lend money if they make a BUSINESS CALCULATION that the money ain’t coming back.
This all could get chocked up to typical misguided liberal do-gooderism if we hadn’t been down this road before and seen that it leads straight off a cliff.
I know what I’m going to do. I’m going to take advantage of one of these new loans and buy me a house with a really strong wall. And then?
You guessed it. I’m going to bang my head against it again and again, just to see if it hurts this time.