Those Who Cannot Remember The Past Are Doomed To Repeat It…

I have posted the YouTube video below before. It is a quick summation of the causes of the collapse of the housing bubble.

I am posting the video now because it relates to an article posted at yesterday detailing the effect of actions of the Obama Administration on wealth in the African-American community.

The article at points out:

Before the crisis, Obama pushed thousands of credit-poor blacks into homes they couldn’t afford. As a civil-rights attorney, he sued banks to rubberstamp mortgages for urban residents.

Many are now in foreclosure. In fact, the lead client in one of his class-action suits has since lost her home and filed bankruptcy.

I understand the desire of community activists to encourage the dream of home ownership in their communities, but that dream has to be balanced with some degree of reality. Unfortunately, we still have not learned that lesson.

The article concludes:

Obama hasn’t learned from his mistakes.

Far from it, IBD has learned the mammoth credit watchdog agency he created (with input from NPA radicals) will dust off Clinton’s 1994 minority lending guidelines to crack down on stingy lenders. And he’s ordered Holder, now acting as his attorney general, to prosecute banks that don’t open branches in blighted urban areas.

Not only has Obama scapegoated banks for the crisis he helped cause, he’s exploited minority suffering to continue reckless policies that hurt those he claims to champion.

Until Americans begin to look at the entire situation–including the impact of forcing banks to grant loans to those who cannot pay they back, the American economy will not recover. Forcing banks to make sub-prime loans sets up a loss for the bank and interferes in the free market. We cannot continue to ignore market forces and expect our economy to recover.

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