You are correct about stifling credit by shafting bankers. Thank goodness the Senate rejected the bankruptcy cramdown bill. If you view that bill in conjunction with Obama’s Homeowner Affordability and Stability Plan, it basically puts a gun to lenders to take write-downs on mortgages entered into in good faith, effectively enacting widespread coercian of banks to hand over bank capital to repair the balance sheets of undisciplined individual borrowers.
Had that legislation passed, any borrower with a debt-to-income ratio greater than 31% would have had a much, much more difficult time obtaining credit, else the bank would be risking cramdown in bankruptcy. I assure you, many bank loans are made successfully in the 30% to 45% DTI range. Part of the effect of Obama’s “plans” have had the effect of borrowers viewing government as an ally against the bank or an eventual savior to bail them out. Defaults have gone up as a result.
Are Obama and the rest of the libtards in government REALLY wanting to increase the availability of lending? As usual with liberals, their words say “yes”, but their actions say “NO”.
I agree with your post - but I wanted to mention your tagline. It is incomplete.
It currently reads, “I HATE tax & spend liberals.”
It should read, “I HATE tax & spend liberals; conservative ones too!”