FDIC Board aims America back toward the Economic Cliff of 2008
Well here we go again America, just when we started to see some excellent signs of recovery, a group of some of the dumbest smart people in the world takes the wheel and aims us right back toward that economic cliff that we was once dangling from only a few short years ago.
According to an article from the Associated Press “new U.S. rules aimed at getting banks to take on more of the risk when they package and sell mortgage securities are being relaxed with an eye to spurring broader home lending. Federal regulators have dropped a key requirement: a 20 percent down payment from the borrower if a bank didn't hold at least 5 percent of the mortgage securities tied to those loans on its books. The long-delayed final rules unveiled Tuesday by six federal agencies include the less stringent condition that borrowers not carry excessive debt relative to their income. The rules, proposed in stricter form in 2011, were mandated by the overhaul law enacted in the wake of the 2008 financial crisis.”
Now let me see if I get this right. The rules established because of the killing of the economy done by the very same entities that are now about to enjoy instituting these same policies again will not crash the economy this time because they are reformed and do not need the threat of severe penalty to keep them honest? The who found it feasible to blame borrowers who took on more debt than their income would allow are now being set up to be targeted again and this time the results will be different? That banks that sold fraudulent documents to other lenders and caused such devastation in the housing market, from which he has still not recovered, will now be allowed to do the very same thing again, won’t because they found Jesus?
To say that the rules “are being relaxed with an eye to spurring broader home lending” is a bold-face lie and anyone with any smidgen of common sense knows better. This is nothing more than a way around Dodd-Frank to appease those in power favor with those on Wall Street. These banks have been off-shoring money since hatchet was a hammer and have billions sitting on accounts so not to pay their fair share of taxes. The relaxed rules are not about spurring broader lending because if that was the key to banks making more money and padding their pockets even more, those with just a pea sized brain would have figured out to use that money sitting off shore to begin this process to make even more money to ship off-shore. My question is who hires these people who make these decisions and who benefits because those that this office was supposed to be serving are not.