Obama Pushes America into Another Subprime Mortgage Crisis?

Although there were a lot of causes for the collapse of the United State's economy in 2008, most analysts would agree that the subprime mortgage crisis was at the root of it. Banks have money, and lend that money to people who want to invest, buy consumer goods, or purchase homes or cars. Banks charge borrowers interest for borrowing the money from them- the interest that the bank earns on the money is used to run the bank (insurance, employees, covering bad investments and loans, making money, lending to other banks, etc). Some people are a greater risk for the bank to lend to, because of their likely inability to repay the loan or past borrowing history, and to be fair to everyone, these people pay higher interest rates. But some people feel that this is unfair or racist or discriminatory, and so put pressure on the banks to give out loans to people at very low interest rates, and the bank made little money off these loans, and many people took out loans that they were unable to repay since they had such low rates, and then many of these borrowers were unable to pay back their loans, and the banks lost more money. This crisis had many causes, but at the root of it was political and legal pressure applied to banks all in the name of making everyone in our nation equally poor someday.

Via theblogprof, I read with frustration that the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access- in other words, Obama wants to increase the number of subprime and adjustable rate mortgages that are being given to those borrowers who are at the most risk of not paying back their loans and thereby causing the economy to collapse. Seriously, he is going to build another bubble to win re-election, and then when it predictably collapses, he'll just play the blame game and it won't matter because he and his buddies will have made a lot money off the bubble regardless.

You have to read the post theblogprof put together- it is a tour de force on the subject.