Socialist States of America still not learning the lessons

[Skybird]

http://img.washingtonpost.com/busine...755_story.html

Hoppe-nian predictions in action!

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

But that Hoppe is right in predicting the political elite acting like this, and that he explains en detail why it is acting like this and will never act any differently, offers no solace.

Not only are politicians totally unscrupulous for the reasons explained by Hoppe - they are also completely immune to any learning effects even if "history" means not events from several decades or centuries ago, but just 5 years.

"Laßt uns die alten Fehler eneut begehen, Genossen!"