Watch the banks fall into line

Some things it’s hard to get a handle on or get people interested in. Finance and economics fall in those categories.

“Hey, I got paid and the check didn’t bounce, everything’s right with the world.”

OK, that’s kind of old worldish, back when people actually got a check and went to the bank and filled out a deposit slip. So now, people access their accounts on line and look at numbers and see there are entries after “Deposits.” The check didn’t bounce.

I don’t know much of anything about finance and economics, but I can read.

The people in charge – the Obama administration – pretty much work on the assumption they know more than the rest of us, and if they work in areas we don’t know – finance and economics – they can do what they want.

So the administration comes up with a new and improved version of the Community Reinvestment Act, but this time with more muscle.

“Yes, believe it or not, the federal government is now starting another initiative to force banks to lend to low-credit-rated blacks and Hispanics -- not just anybody but specifically blacks and Hispanics -- and is threatening -- and already imposing -- huge punitive fines if they don't. Moreover, this time they're going even further. They're going to take over the credit rating agencies and force them to change their standards to accommodate blacks and Hispanics so that nobody will have any idea who is a bad credit risk and who is not. In so many words, the government is about impose its will on the whole home-lending market and force another round of bad loans so that the banks are going to be looted once again so that even the federal government may not be able to bail them out this time.”

http://spectator.org/archives/2012/07/27/and-you-thought-the-housing-cr


(Linked from maggiesfarm.)

Oh, oh! You said “blacks and Hispanics!” You’re a racist!

No, I am not. That’s a secondary argument, anyway; the kind Obama supporters use when somebody disagrees with their positions and policies.

Anyway, watch banks fall into line, lockstepping supposed support, because above all else, banks intend to stay in business, the same as politicians intend to stay in office.

Nazis had banks, Soviet Russia had banks. And bankers followed instructions from government.

Lockstep. It’s the new way of doing business.