He isn't saying lend to people with bad credit. He is asking banks to be willing to lend to people who are on the verge of qualifying, but are not quite there. I don't see the issue with this. But of course, I'm not somewhat who bashes the President for every single thing he does, just the stupid things like that Monsanto horse ****...
Taxes, Loan payment, open lines of credit (not just debt but any possible debit), car payments, personal lines of credit and loans and you come up with one fixed number determined by total salary or income. It is up to you how you want to divide the percentage of that number, 100% credit cards loans, or 20% house, 20% car, 20% credit etc...the way the system works now it isn't like that. People can overextend themselves way to easy by buying a house the stretches them to the max, then they apply for 4 credit cards and buy a new car with a 7 1/2 year note so the payments are lower.
So they have a 30 to 35 year mortgage, a credit line of 30K and a car being paid for over 7 1/2 years. All the creditor sees is a way to make that 4% interest back into the 8% that it was in the 90's by doubling the term of the loan. That type of thinking is way flawed and will fail on so many levels given the fluctuations in todays ever shifting economies.
Yup I generally go to the auction and by my vehicle second hand and pay them off in 3 1/3 to 4 1/2 years. So got a loaded 02 Tahoe at auction in 06 for 14K with high miles and still drive the **** out of it today, been paid off for years and I love it.
"Martining" things is no way to go through life.
Don't be a Martin.
"Politics is the Art of Looking for Trouble, Finding it Everywhere, Diagnosing it Incorrectly, and Applying the Wrong Remedies"
But after that crisis, banks are being overly cautious with who they lend to because they don't want to go through that mess again. Sounds like Obama is saying lend to a few more people on the cusp of qualifying, with the assurance that if it doesn't work out, we'll cover it. Sounds to me like he is confident it'll work out. A gamble? Sure. But he needs to do something since people who know jack **** about economics are pushing austerity and there are few ways to counteract that nonsense...
And it's an extreme stretch to say giving a few more Americans the chance to buy or re-purchase a home is the same things as giving the most immoral corporation in the country free reign to do what they want without worrying about consequences, don't you think...?