Bombshell: Obama Created Subprime Loans As Lawyer
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Monday, September 3, 2012 - Capitalism Institute by Shaun Connell
Shaun Connell
Ask me a question.
WASHINGTON, September 3, 2012 — Barack Obama has made his fundamental campaign strategy the blaming of other people. Bush, Greenspan, Reagan — he’s tied Republicans into every aspect of the economy being broken. And, of course, he’d be right about most of that. Bush and Greenspan both created easy credit, big spending, and unsustainable policies that have hurt our economy.
But now, Obama’s going to have some explaining to do about his own actions before he was president. A bombshell new story at The Daily Caller reports that Barack Obama used his status as a legal hired gun to sue Citibank to force them to give loans to poor minorities in Chicago.
In other words, he sued a bank into creating subprime mortgages.
Why did Citibank have to be forced into granting those loans? Because they weren’t profitable — they were going to end in foreclosure. Subprime loans almost ended the financial system as we know it in 2008, after fueling a mortgage bubble that exploded with devastating effect on the economy. Obama was right there in the thick of it, helping to create the problem and undermine capitalism.
Half of his clients went bankrupt.
The community organizer knows essentially nothing about economics, as he’s shown over the last several years. Most of his political capital has been spent on programs that will increase regulations, costs, and deficits. The last thing we need is to be forced into doing what Obama wants us to do.
And we can see evidence first hand of what happens when Obama is involved in your personal financial choices: You’ll probably go bankrupt.
Only 19 of Obama’s 186 still have clean credit. The rest have missed payments or have been foreclosed on. Almost half ended up losing their houses.
Obama used government and legal coercion to subvert markets; he forced banks to give out loans that almost took out the United States economy 2008. Obama’s leftist ideas are one reason we got into this mess in the first place.
Why forced loans don’t work
You can’t legislate the laws of economics away. You can’t distort prices with price controls without distorting supply and demand. Prices are a crucial element of the market economy. They tell us where resources are most valued, sending vital information to producers and consumers. Distort that information and we get the wrong goods produced, the wrong services provided. That’s how we got a huge overhang of subprime mortgages.
The government — via people like Obama — used laws to force banks to make a bad decisions, and then reacted in horror when those banks began to stumble. Obama’s ideas almost destroyed America, and now he’s claiming he’s the lone candidate who can save us from that same destruction. This is insanity.
Harry Browne, a former libertarian presidential candidate, once said: “Government is good at one thing: It knows how to break your legs, hand you a crutch, and say, ‘See, if it weren’t for the government, you wouldn’t be able to walk.”’
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