Insanity is described as repeating what has not worked in the past in the hope that it will work this time. Unbelievably, this is exactly what the DOJ up to, complete insanity. Investors Business Daily reports the following:
In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.
Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says.
Now wait a minute, here. I thought “RACIST” had come to mean, “I don’t like what you said because it doesn’t fit the progressive line so I’m going to call you names until you either shut up, agree with me, or I’ve destroyed you.” So now it can also apply to numbers? If I don’t like your numbers I get to be a racist? If they keep this up pretty soon “Racist” will just be another audible pause, like “Ah,” “Um” and “you know.” I can just see Obama without his teleprompter now: “It would cost us, racist, as much over ten, racist, years as it would, racist, as it would cost us racist, to do what we would have done in the, racist, first place.” The very image of a modern world leader! But enough about semiotics.
I guess if we can debase our language, to say nothing of our capacity for logical thought, there is no reason why we shouldn’t demand that banks also debase their lending standards. Its not, after all, as if they hadn’t done it before. Even though we see how well those debased lending standards worked out over the first decade of this new century here we are again, the government doing for us what only government can do: imposing insanity backed by threats of force.
In several cases, the government has ordered bank defendants to post in all their branches and marketing materials a notice informing minority customers that they cannot be turned down for credit because they receive public aid, such as unemployment benefits, welfare payments or food stamps.
Among other remedies: favorable interest rates and down-payment assistance for minority borrowers with weak credit.
These are exactly the people we see defaulting in droves not because of any racial prejudice against them but because these are precisely the people who have not established by a life long habit of responsibility the financial foundations that would enable them to carry a mortgage for thirty years. We can be grateful for small favors, though. At least they won’t be making these crazy loans to poor white trash.
So why are they doing this? It is certainly not going to be a long term benefit to these unqualified prospective home owners, nor to the banks that will be making these loans. It might be nothing more than the old Socialist reflex to curry favor with the oppressed masses in the hope of lining up future voters. Maybe it is an attempt to rehabilitate the Voter Fraud Arm of the Progressive Party, ACORN (with the added benefit of stimulating jobs amongst the activist faithful). Maybe it is a ploy to promote employment at the FDIC. Maybe its just another ham fisted reminder that the ultimate Too Big to Fail entity is the government, which has unlimited access to other people’s money (yours and mine) to fund them.
Speaking of debased rationality, here’s what the DOJ spokesman says – Justice spokeswoman Xochitl Hinojosa said the anti-discrimination notice “does not compel the banks to make loans to people who do not qualify.” She said such measures are “essential to remedy the harmful effects of the banks’ conduct.”
The question comes to mind: Who is going to save us from the harmful effects of the government’s conduct?