I said a couple of weeks ago that the situation in Greece would bring about some very troubling economic times in the Euro Union and thus throughout the world. The Greek Communist party has been promising if they are elected to power in Greece they would return Greece to the times prior to Austerity, that is spend and spend. The Euro Union (Germany) was in a position to save Greece from bankruptcy at that time. The whole world knows the Euro Union (Germany) cannot and will not save the Greeks again.
The Greek Communists have stated if elected, not only will they return to the normal communist policies, but they will also want Greek debt renegotiated. This means more losses to the countries and banks that stepped in to save Greece in the first place. It will also continue the steep devaluation of the Euro. The balance sheets of many European Banks simply cannot absorb that write down much less the additional ones to follow. This economic chaos is of no concern to the Greek communists. After all, this is simply a form of redistributing wealth. It is of concern to the world markets as reflected in the United States market today and to an even greater extent the European stock markets.
It was less than a decade ago that the world economy suffered a very severe earthquake due to Marxist inspired home lending policies in the United States. The Marxists and the left would like the world to believe this crash was caused by the banks. In fact, the crash was begun by Chris Dodd and Barney Frank. These two dedicated Marxists/Progressives pushed irrational lending practices for years and then encouraged them by having their pals at Freddie-Mac and Fannie Mae purchase and market these junk loans as A loans. This lucrative game did not go unnoticed by the banks as they joined in the charade.
All of this fiasco came about because of the Marxist/Progressive notion that all should be able to own homes regardless of income or credit worthiness. After all Dodd and Frank said that it is not the fault of the people that they have bad credit. Plus, Dodd and Frank claimed we should have “innovative” loans to allow people to buy homes without adequate income or down payment. The rest is history as the cliche goes.
So here we go again as Julia Gordon, Director of Housing Finance and Policy at the Center for American Progress, (Marxist/Progressive think tank started by John Podesta) testified before the Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Housing, Transportation, and Community Development on December 9, 2014. In order to help strengthen the housing market, aid struggling families, and revitalize hard-hit neighborhoods, she provided a set of recommendations to help; recommendations that seem to be taken from the Dodd – Frank book of how to create financial chaos.
To increase access to safe and affordable credit, we recommend that the following steps be taken:
Congress should complete comprehensive reform of the housing finance system.
The Federal Housing Finance Agency, or FHFA, should play a powerful role in increasing access to credit.
As a provider of credit to so many undeserved populations, the Federal Housing Administration, or FHA, should continue to improve access to and affordability of credit.
Congress and regulators should support alternative mortgage channels, innovative products to reach undeserved borrowers, and effective housing counseling.
Congress should extend the Mortgage Forgiveness Debt Relief Act, and it should convert the mortgage interest deduction to a tax credit.
Regulators should collect better mortgage data to help identify problems and potential solutions in the market.
Thank you Greek Communists and American Marxist/Progressives for proving Einstein correct when he defined insanity.