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Obama Regime Wants to Bring Back Subprime Mortgages

BEGIN TRANSCRIPT

RUSH: I had this story in the stack yesterday, and I didn't get to it.  The Washington Post had a story that Obama wants to reignite the subprime mortgage program.  I kid you not.  The regime, according to the Washington Post, is engaged in an effort to make more home loans available to people with weaker credit.  It's the subprime mortgage.  It's because the economy is recovering. It's because the housing market is rebounding.  I mean, that's what they say.  Obama wants to make, again, home loans available to people who really are at great risk for not being able to pay the mortgage. 

It's an effort that regime officials say "will help power the economic recovery."  I'm telling you, you're hearing right.  According to the Washington Post, the regime wants to make available home mortgages to people who can't afford them again, in order to help power the economic recovery.  Now, we got some unemployment numbers today, and the new applications for unemployment compensation skyrocketed.  They exceeded all the expectations.  It was like 385,000.  Now, for me, I am beyond the week-to-week reports now.  They don't matter anymore, 335,000, 350, 385,000, whatever, all I know is that this economy is not producing jobs. It certainly isn't producing careers.  I don't know what economic recovery people see out there.  I wish there were one, don't misunderstand.  God, how I wish there was one.  But there isn't. 

Would somebody explain to me how making available mortgage money to people that can't pay it back powers anything? 

(interruption)

Okay, give it a shot.  Tell me. 

(interruption)

Really?  So it empowers the community, which has been feeling neglected by Obama, did you say?  So the low income, incapable of affording a mortgage community, which feels abandoned by Obama because they thought his presidency meant economic prosperity for them, he's now paying attention to them.  And so even when they can't afford a house, he's going to be seen as the guy making it possible for them to have one?  That's your theory?  Recycle the whole thing, designed for Obama to score points in a rotten economy. He's making it possible for people to move out of the shelters and into their own home.  I see.  The community.  Right, right.  The community.  Whatever the hell your community.  Right. 

By the way, the Washington Post reports this is the greatest thing.  No red flags at all here.  There's nobody alarmed at all.  They do say, "Skeptics say could open the door to the risky lending that caused the housing crash in the first place."  But then they go on to impugn the skeptics.  He-he-he-he-he-he-he.  "President Obama’s economic advisers and outside experts," which come from across the political spectrum, don't you know, "say the nation’s much-celebrated housing rebound is leaving too many people behind."

Snerdley, you're right on the money.  We got a boom going. We got the housing market coming back, but the poor are once again left out and we gotta get them involved.  We gotta make them feel like they're part of it.  We gotta get the community into this recovery.  That's right.  It's stash time.  It's time to get into Obama's stash.  'Cause too many people are being left behind, "including young people looking to buy their first homes and individuals with credit records weakened by the recession."  Not weakened by their own activity.  No, no, no, no, no.  Weakened by the recession. 

"In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs," meaning you and I are gonna subsidize this.  FHA loans are going to be expanded to handle this, Federal Housing Administration.  We don't have any money.  Folks, the country doesn't have any money.  There is no money for this.  But once again, the long arm of government is reaching out to bankers and pointing a finger at 'em and saying, "Here's what you're gonna do."  What happens if the bankers don't want to cooperate?  Probably will be given a ticket to Cyprus.  That would be my guess. 

"Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default."  Can I translate that for you?  Housing officials are urging the Justice Department to tell the banks, "Don't worry, we will not prosecute you. We will not fine you if you make these loans to people that can't pay 'em back.  We know we're asking you to make loans to people who might default, and we are assuring you that you will not face financial recriminations if you do it." 

Well, by implication, if they don't do it, they might face recrimination.  It is an unstated... ah, call it a threat.  On this program I wouldn't characterize it that way. That's what it is, but it's a little promise, little assurance, "If you do what we want you to do, we're gonna indemnify you. But if you don't, we may not indemnify you for whatever else we find you guilty of down the road."  It's unbelievable.  Literally unbelievable. No punishment for bad loans.  The only punishment will be for not making bad loans.  That's what this means.  That's what all that translates down to.  They're telling the banks, "We're not gonna punish you if these people default, but we might if you don't make the loan in the first place."  The banks are not gonna sit there and eat this just like they didn't the last time.  Unbelievable.

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