Obama Goes Back on the Campaign Trail to Play Make Believe

After a brief time out, the president is back out campaigning for the job he already has.  Obama is tormenting residents of Allentown, Pennsylvania with outlandish fabrications about the economy.  His warped analysis of the housing crisis is especially duplicitous.  Obama dilligently avoids mention of the roles played by ACORN, Fannie and Freddie under the splendid oversight of the United States government in demolishing vast quantities of personal wealth.

ACORN was the primary driver behind the sub-prime loan mess, engaging in Jesse Jackson style shakedowns to force lenders to make loans to borrowers with full knowledge there was never a chance these loans would be repaid.  Co-conspirators including Barney Frank actively participated in the massive fraud against the American taxpayers.

The very slight housing recovery seen in a few markets will be short lived.  The worst of the sub-prime foreclosures are winding down and sales are driven now by low prices combined with Obama’s clunker program for housing in which buyers are lured into mortgages via temporary tax credits.

The wave of unemployment foreclosures should balance that out fairly quickly.  Worse yet, a significant number of buyers in many markets are using FHA loans to purchase, again requiring virtually no down payment.  Many sellers, particularly lending institutions unloading bank owned properties, are picking up the buyer’s closing costs, ensuring that buyers have minimal financial stakes in their homes.

As some states, including California are doing everything possible to stop banks from foreclosing in an effort to maximize losses to the banks;  expect a bigger housing crisis and a very long catastrophe.  Some markets will  never recover.  At least not until they finally wise up and stop letting liberals run everything.