Monday, January 5, 2009

Social Engineering Gone Bad

Imagine if one could set aside the laws of physics and suddenly, government officials declared simple tap water would replace gasoline. No more need for Middle East oil.

As preposterous as that would be, democrat lawmakers tried to do just that in the housing and mortgage market as they tried to suspend the laws of common sense and give loans to people that had limited or poor credit and lacked sufficient amount of savings to actually buy a house. 

This article shows how government social engineering fails. Just because government wills it, it doesn't make it so. 

Hispanic home ownership lagged behind other population segments. In an effort to make these numbers equal, government programs were created to encourage lenders to target hispanics, creating a loan program that didn't require any money down, along with lower lending standards.

The result, extraordinary loan foreclosures. Politicians will blame it on greedy subprime lenders, but the real problem is social engineering. 

What are the chances of politicians talking about turning water into oil as the culprit? Not a chance...

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