Saturday, July 11, 2009

Where are the Predatory Lenders When We Need Them?

This morning's NY Times pretty well tells the story of the aftermath of the Obama Administration's attack on housing lenders -- new home buyers with reasonable credit, but limited history, cannot find mortgage loans. Thanks, Barrack.

This is the result of demonizing lenders and altering the rules abruptly at Fannie Mae and Freddie Mac, going from one extreme to the other. Perfectly predictable.

The new Obama regime has done the same thing with credit cards and with the same results. Middle income folks with good, but not great, credit are toast in this market as well, thanks to the President.

This freezing out of the average guy in the mortgage and credit card market will have a serious dampening effect on the nation's ability to get out of the current mess. Indeed, it will make the current recession worse.

Obama policies have consequences, unfortunately..