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Jun 17 2022

Democrats Conspire to Recreate 2008 Housing Meltdown

You think the economy is bad now? You’re right, it is. The stock market is down 20% so far this year, and our savings are evaporating as Biden doubles down on the very policies that caused runaway inflation. But it will get far worse. At least for now our homes still have value.

Remember the financial crash of 2008, largely caused by Democrats forcing banks to give mortgages based on race instead of ability to repay the loan? Once might be explained by a combination of recklessness and extreme stupidity. But now they are doing it again. Fannie Mae and Freddie Mac will soon be back in the news:

Last week the government-sponsored enterprises [GSEs] released plans to promote housing “equity” that are chock-full of race-based subsidies.

Fannie and Freddie have been under federal conservatorship since Treasury rescued them during the housing meltdown with a $190 billion taxpayer bailout.

If only they had been allowed to die. Now leftists are again weaponizing these GSEs to punish white privilege on behalf of racial justice.

In September the Biden [Federal Housing Finance Agency] announced it would require Fannie and Freddie to “prepare and implement three-year Equitable Housing Finance Plans that describe each Enterprise’s planned efforts to advance equity in housing finance.” Translation: They must find ways to boost minority homeownership no matter the risk for taxpayers.

It doesn’t matter to Democrats whether you can afford a house, so long as you have the right skin color. Anyone who objects will be denounced as a racist.

Central to Fannie’s plan are “Special Purpose Credit Programs” that increase access to credit and encourage “sustainable homeownership for Black consumers.”

Remember the houses purchased by those who could not afford them with little or no down payment, leading to the crash?

One program would assist black borrowers with down payments. Most home-buyers are required to put down at least 20% of the cost of a new home to reduce the risks of default. Fannie’s plan would effectively require taxpayers to subsidize down payments for black borrowers. …

Another new program would reduce “loan level price adjustments” for black home buyers.

There are laws against racial discrimination. But under liberal rule, these laws are not enforced if the victims are white.

Still another program would “support the reduction of borrower closing costs for Black homebuyers”—for instance, via appraisal reimbursements. Taxpayers would help finance this “support.” Fannie also wants to help black homeowners avoid foreclosure by helping them “deal with unexpected expenses and repairs, or temporary disruptions to income.”

No job? No worries. So long as you are black.

This has the benefit of stoking racial resentment, which the media can milk for evidence that white people are racist, thereby propping up Democrats’ false and malicious ideology.

The profligate unfunded spending that caused inflation to spiral out of control remains in overdrive:

The GSE equity plans would let the Administration spend billions of taxpayer dollars on housing without Congress appropriating a cent.

The 2008 meltdown is too fresh in memory for this to be an accident. Democrats are deliberately creating another housing crisis. The last one swept Barack Obama into power and served as a pretext for the insanely intrusive Dodd-Frank Wall Street Reform and Consumer Protection Act, moving us a great leap closer to a Soviet-style centralized economy.

Who knows what tyranny Biden et al. will be able to wring out of the next collapse? The more severe they can make it, the more of our wealth and freedom will go up in a puff of political correctness.

On a tip from Varla.


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