Democrats Pursue Another Housing Crises

Every adult reading this remembers the 2007-2010 recession, a recession that never really ended during the dark and soulless Obama years.  Proving that communism is the objective and mindless adherence to communist principles the means, the 2020 Democrat platform includes this gem:

Whereas the Republican Presidential nominee rooted for the housing crisis, Democrats will continue to fight for those families who suffered the loss of their homes. We will help those who are working toward a path of financial stability and will put sustainable home ownership into the reach of more families.

There was one simple cause of the housing crises, the government incentivized lenders to loan money to people that could not repay it.  This unrealistic model was birthed in a point of light under Bush I, greatly expanded during the Clinton years and further expanded during the Bush II years.  Much of the cause accelerated with the Clinton/Bush II "subprime" mortgage market.

In its simplest terms, a subprime mortgage is a loan from a bank to a customer who pays less for the money borrowed than the bank pays to the Federal Reserve system for the same money.  It is a guaranteed loss for the bank that lent the money, or the eventual holder of the loans.  While the original lender can make money from the sale of the loans, and trillions of dollars were made through that ponzi scheme, eventually a bank has to earn enough from the loan to pay for the loan and a little more to make a profit.

The resale market could not endure forever.  Eventually a few large banks, holding the mortgage loans, were unable to float a profit by selling the loans.  So, those few large banks had to pursue profit from collecting the loans.  

The fixed rate loans could not be salvaged.  The holders held nothing more valuable than a bag of sand with a large hole in the bottom.  The variable rate mortgages, procured at almost zero rates had only one direction to go; up-straight up.  The people who had the rapidly rising interest rates were flooded by house payments that they could not afford.  The default rates sky rocketed in 2008.

Default and foreclosure rates never returned to pre-crises levels during the entire Obama/Biden tenure.  Now, only four years after the stumbling economy of the Obama/Biden years, bumbling Joe Biden and the communists he leads want to start the disaster all over again.