Oops, we’re doing it again!
Seems like President Obama knew what he was doing when he appointed Mel Watt to oversee Fannie Mae and Freddie Mac. He wanted a return to the days of easy credit that CAUSED THE FINANCIAL MELTDOWN IN THE FIRST PLACE.
Because Obama really does think George W. Bush caused the Great Recession. Actually, it was Lefty lending policies that put people in houses they couldn’t afford. Obama’s contribution to solving this problem has been to NOT work to disband Fannie and Freddie, which is what was supposed to happen. Instead, he’s put them right back on track to screw up again
Federal Housing Finance Agency Director Mel Watt signaled today that he was reversing the tough-love direction set by his predecessor, the Bush-appointed Edward DeMarco, announcing that he will not force Fannie and Freddie to reduce their maximum loan limits, an idea DeMarco was contemplating. The mortgage loan limits for 2014 are $417,000 for a single-family home in most areas, and up to $625,500 in high-cost areas
What’s more, according to the Wall Street Journal, Watt said Fannie and Freddie will be helping prop up Detroit:
He also said Fannie and Freddie would participate in a new pilot program focused on neighborhood stabilization in Detroit that could be expanded to other parts of the country later. “We believe this will be a win-win for hardest hit communities and for our conservatorship objectives,” he said in a speech at the Brookings Institution.
Even after the economic calamity of 2008 and 2009, the Left is so sure of itself that it can’t grasp that it was its own polices that caused the near-demise of capitalism. As long as you’re convinced Bush and the evil wealthy did it, then all you need to do is not have Bush around and close the income gap, and everything will be fine.
And then we can have the housing market crash again in a few years under a Republican president, and blame him again.