During the Clinton administration... Fannie Mae and Freddie Mac... were 'instructed' to make loans available for people who normally did not qualify for a home loan. So private lenders followed suit and came up with... adjustable rate mortgages... lower down payments or no down payments... qualifying people for homes based on 40 - 50% of gross income. What happened? A housing debacle with foreclosures at all time highs. So, I our government's infinite wisdom... they bailed these failing banks out with 'our tax payer dollars. So the banks began tightening lending guidelines and guess what has happened? That's right... the government is creating a 'watch' list for those lenders who fall below a standard, established by our government, to start lending again to who... people who defaulted on the home mortgages to begin with. Why do we keep rewarding people who fail? Failure doesn't mean the person is a failure... only made failed decisions. But we insist on 'bailing them out' which in essence is saying, "that's OK... go ahead a make failed decisions again." You gotta love it.
G.M. Barclay
No comments:
Post a Comment