Idiocy On An Epic Scale … How Congress Will Create The Next Financial Crisis: H.R. 5148: Access To Affordable Mortgages Act


New bill: Congress engineering yet another financial crisis (Sovereign Man, Sep 6, 2014):

Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.

Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.

It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.

Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.

And we certainly can’t have that going on in the Land of the Free.

So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.

Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.

It’s as if Congress is now anti- ‘Truth in Lending’ and pro- ‘whatever the hell gets the money on the street’.

And of course, all of this comes at a time when mortgage rates are still near their all-time lows.

You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.

Isn’t paying 4% affordable enough? Nope. Not according to Congress.

So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.

This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.

They’ve unloaded their toxic assets to the US government and Federal Reserve.

They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).

After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.

So what does Congress do? They propose a new law to screw up bank balance sheets all over again.

It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.

1 thought on “Idiocy On An Epic Scale … How Congress Will Create The Next Financial Crisis: H.R. 5148: Access To Affordable Mortgages Act”

  1. The US economy is so broken that it really doesn’t matter much……I reiterate once again…….the powers that be rely on being the world reserve currency, insuring demand around the world. Unfortunately, thanks to a crooked governance, over half the world no longer uses the dollar at all.
    Since 2010, the world has been moving slowly and surely away from the US and the dollar. Over the past 90 days, major players have come out with that information…..information I have been following since early 2010……..BRICS is just the latest step.
    Brazil, Russia, India, China and South Africa put together a huge fund equal to E100 billion to loan to smaller nations wanting freedom from US dominance. They are doing what the US used to do, helping smaller nations grow, not just bully them.
    As it stands right now, countries no longer using the dollar include but are not limited to Russia, China, Brazil, most emerging nations in Africa, Central and South America, India, Japan (Obama gave them a pass whatever that means), Turkey, Iran, other smaller middle eastern nations, Australia, New Zealand, and Switzerland. There are more countries I have not committed to memory, but they cover better than half the world.
    Congress cannot control the entire world. They are showing the real desperation of the special interests that control them……..they want to suck all they can out of the economy before it collapses.
    Even if they sold houses for half of what greedy guts ask for them, they would still cost more than most people can afford. Prices for homes have been pumped up to keep the banks looking affluent……..and most people are priced out of the market.
    The head of the IMF tried to pass a rule two years ago. It was going to require all banks have five cents on deposit for every dollar of assets they claim. The banks would have had to borrow the five cents…..the deal died.
    Banks are empty shell, held together by paper debt twisted to look like assets using convoluted accounting methods that would make Enron practices look clear by comparison.
    The banks are as bankrupt as the nation…and the nation is already sitting on piles of paper money nobody else wants, so……Who else but fool Americans? As long as they spend the money here, like other unimportant countries, I guess it won’t matter much.
    Scam after scam after scam…..but
    I am not going to lose sleep over this, the US has real problems, the biggest being the loss of world reserve currency status to over half the world’s economy, being over-run by the joined Eastern nations.
    Russia, by establishing their own highly solvent financial alliance, BRICS, has established its alliance as the biggest world player. Next alliance is the EU. Following is the US, (biggest liar, claiming to be the world’s biggest economy).
    The Eastern Alliance does not use the dollar. Thanks to the fool sanctions being considered by them to put pressure on Russia has already backfired…….Russia will stop sending them gas and fuel needed to warm their homes in the Winter, and an active ingredient in many other products sold at home and abroad.
    Russia also added E120 billion a year to EU GDP. Now, that has been sharply curtailed. Russia is making money, they are solvent, along with their other BRICS partners and member nations……the US and EU are mired in debt.
    The EU cannot afford to seek out and pay alternative sources of energy, and cannot take the E120 billion hit a year. A deal will have to be reached.
    If Putin is as smart as I think he is, part of the agreement will be to join with the east, and dump the dollar. The day the EU dumps the dollar, it will collapse.
    The US has greater problems than the fool congress can endeavor to fix.


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