Foundations for another bubble then bust

[BMW]

History repeating. maybe the last bubble wasn't big enough?

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps

article here

 

[Aaron Sice]

yep - been saying since before 2006 that the foundations were being laid for a god-almighty crash about 2020-2025.

like, proper depression inflationary and deflationary at once, bread lines, wheelbarrows full of cash, rent makes up 2% of living costs kinda crash.

it will be the double default to end it all then the global currency to "avoid it happening again".

but i'm just a crack pot.

 

[datto]

At least rents will be cheap!