When he was a community activist and a lawyer in 1995, Barack Obama led a discrimination lawsuit against Citibank that secured subprime mortgages for 186 African-Americans in Chicago.
The Daily Caller reports that as few as 19 of these 186 homeowners still own their homes with a clean credit report. Most of the 186 lost their homes.
So what’s the point of pushing people into mortgages they can’t afford? And then upraid the banks for so-called predatory lending when they’re forced to extend loans to people with a low chance of repaying such loans?
The Daily Caller reports:
Progressive activists’ ambition instead contributed greatly to a housing bubble that burst in 2007, crashed the nation’s economy in 2008, wiped out at least $4 trillion in equity, kept unemployment above 8 percent for four years, and damaged the intended beneficiaries of looser mortgage lending standards.
In the White House, Obama has continued to intensify regulatory pressure on banks to provide more risky loans to African-Americans and Latinos. He has used lawsuits to fund his allies. And taxpayers are now unwittingly contributing to a re-inflation of housing prices.
Meanwhile, the president has blamed the housing bubble on supposed GOP deregulation, even though President George W. Bush expanded the regulation-expanding, anti-redlining policies established by progressives during Bill Clinton’s presidency.
“Governor Romney’s plan would… roll back regulations on big banks,” Obama says of his Republican challenger Mitt Romney in a 2012 TV ad titled “The Choice.”
“But you know what? We tried that top-down approach. It’s what caused the mess in the first place.”