In what could be one of the most disastrous plans of the present dictatorship, Obama now wants credit reporting agencies to use utility and cell phone payments for scoring credit so that deadbeats and illegal aliens (And I’m assuming illegal alien deadbeats) can get mortgages to buy houses or get loans. The problem is if they use that criteria it could be very deceiving. Many of them have Obamaphones and receive HEAP to pay for their heat and electricity. Therefore, their credit records would get a big boost without them paying a dime out of their pocket, assuming Obama gets their checks to the utilities in time.
This is scary stuff. Of course, Obama cannot force them to issue credit to these deadbeats, right? Maybe not legally. But what happens when a gaggle of lawyers show up and tell a bank manager, “Nice bank you have here. It would be a real shame if something should happen to it.”
Let me tell you a story about an event that took place a long time ago in a universe far, far away. (Chicago) ACORN decided to sue Citibank because they were not giving out enough loans in depressed areas of the city with people with terrible credit. Now, the lawsuit had no merit at all but ACORN organized a nationwide boycott of Citibank, who were forced to surrender. Now, if they went to court, Citibank would have won easily but the pressure put to bear caused Citibank to make 186 mortgage loans in the blighted area. Of that 186, over half have gone bankrupt. Only nineteen of the people who got the loans, still have their homes and good credit ratings.
ACORN had reached out to a local community organizer, who trained ACORN employees, as the lawyer of record on the lawsuit against Citibank. His name was Barack Obama. This newest push is not just 186 mortgages. Do you have any idea the number of people who have insufficient credit? Try 45 million. What kind of financial crises could that create? I never heard anyone talk about it much, but do you know what made the crash worse than it should have been?
The most devastating factor in the mortgage crash was artificial pricing. Homes like any product are subject to supply and demand. Because so many unqualified buyers were able to buy homes, it drove the prices of all homes higher than they normally would be. Established homeowners saw the values of their homes skyrocket. They began using their homes like ATMs, refinancing their homes and using the money for cars, home improvements and vacations. When the market crashed, homes were reduced in value because the bubble popped.
Here we go again.
Courtesy of Red Statements.