Letter: Bad Credit Risk Bank Loans Are Truly Unintentional Charity | Letters
Bad credit risk bank loans are an involuntary charity
“Giving all Americans a chance to achieve their dreams” [Aug. 4] aims to promote a program designed primarily to provide money to minorities who cannot afford to acquire homes for themselves.
If the editorialist substituted the word give for the concept used, which is lendat least some readers could correctly deduce what it actually means.
The concept pushed here is really involuntary charity disguised as bank loans.
The article mentions a federal law called “The Community Reinvestment Act”.
What it actually does is force banks to lend money to people who have bad credit risks. The law is a product of the Carter administration that was resurrected by the Obama, now Biden administration.
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The tools previously used before were the ultimate lenders known as Fannie Mae, Ginnie Mae and Freddie Mac, all quasi-governmental organizations designed to look like US-guaranteed lenders. when they are not.
In the early 2000s, many savvy traders used this same situation during an economic downturn (once known as the Depression) to snatch perhaps a trillion dollars from the American taxpayer.
The Federal Reserve along with the US Treasury got Congress to turn on the money taps to bail out the banks (US and foreign) with money from the printing press, the responsibility for which the American people became responsible.
For more, please see TJ Woods Jr.’s little book, “Meltdown,” which will.