Stan Liebowitz, writing in America’s Newspaper of Record this morning, spells out in detail what I think we all kind of know: That the folk losing their homes because they took easy loans with minimal credentials are victims not of “predatory lenders,” but of government-sponsored – in fact government-mandated – political correctness.
Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed “the most flexible underwriting criteria permitted.” That lender’s $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.
Who was that virtuous lender? Why — Countrywide, the nation’s largest mortgage lender, recently in the headlines as it hurtled toward bankruptcy.
[Me] Political correctness and rational commerce are simply incompatible. You have to choose one or the other.
We shall, of course, continue to choose political correctness.
Another thing that goes without saying, is that none of the major presidential candidates will say what Stan Liebowitz is saying … though one of the minor candidates might.