Over-regulation isn’t necessary

Barack Obama likes to take aim at “fat cat” bankers and Wall Street. Many members of Obama’s proletariat love it and thrive on any attempt to blame corporations for the current economic problems. Yet, there are two things that could have prevented the housing bubble and the current recession.

1. Not everyone should own a home.

Many will find this statement appalling. After all, isn’t home ownership the American Dream? The problem is that the federal government encouraged home ownership and encouraged relaxed lending standards, which allowed unqualified buyers to receive mortgages. Many of these loans had adjustable rates, didn’t require documentation, or required no money down. Is it any wonder that banks were overwhelmed with bad loans? » read more

Barack Obama’s idea to weaken banks

Barack Obama will be having a meeting with CEO’s from the banking industry. One of the topics he will address is their need to lend more. Yes, you heard correctly! If you think this is a little odd, you’re not alone”

“The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”

The recession has been serious, and it was was caused by a myriad of problems. Some of those problems were related to banks extending credit to people who shouldn’t have received a loan, and irresponsible borrowers who took on too much debt. Let’s also remember that many of these financial institutions were under-capitalized. Now that things are slowly starting to improve, what does the administration want to do? Lend more! » read more