Posted by
Always To The Right on Thursday, November 20, 2008 6:08:49 PM
They’re baaaa-aaack.
The same people who engineered a global financial meltdown with bad
loans covered by government backing have begun exploiting the Federal
Housing Administration in the same manner as Fannie Mae and Freddie
Mac. Lenders who have bad track records in subprime loans have begun
flooding FHA with questionable paper as part of the supposed rescue plan
Business Week has plenty of examples of this kind of shell game
maneuvers in the FHA licensing pool. We’re heading to yet another
collapse through yet another government intervention in the lending
market. Until we stop encouraging the purchase of bad paper in order
to achieve social policy, taxpayers will continue to be at risk, and we
risk the collapse of Western economies.