(TRUNEWS) Experts are predicting President Obama will push the nation into another housing crisis before he leaves office in January.
It will be created by a spate of sub-prime mortgages, just like in 2008, as more buyers who have low credit scores and high debt levels get approved to buy homes, as reported by the New York Post.
Government-sponsored lenders like Fannie May and Freddie Mac, as well as the Federal Housing Administration, have demanded lower standards in order to achieve the goal of providing “affordable housing”.
Some people can obtain a mortgage with only 3 percent down.
When the economy turns downward the result will be the same as 2008 – people will default on loans.
Obama speaks at the State Department in Washington
The Washington Post has released a new report which claims the Obama administration is trying to convince the Justice Department to reassure banks that there will not be a fallout if risky borrowers default on loans.
“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto of the American Enterprise Institute.
The push is a win for the banks – they make more loans with government guarantees, and now their profits are risk-free, according to Zero Hedge.
The taxpayers will be on the hook during the next crisis, to bail out the banks.
The post Experts predict Obama spearheading the next housing crisis appeared first on TRUNEWS with Rick Wiles.
from TRUNEWS with Rick Wiles http://ift.tt/1r051dX
via IFTTT
No comments:
Post a Comment