As Obama Pushes Loans To Applicants With Weaker Credit, Liberal Donors Cash In

News this morning from The Washington Post that one could file in the “insanity is doing the same thing over and over” file.

In a desperate move to try and reignite the economy, the Obama Administration is pushing banks to approve home loans for applicants with weaker credit. You’ll recall this is the same scenario that led to the economic collapse of 2008.

Conn Carroll of The Washington Examiner reports this morning that hedge funds are getting in on the action too, pouring in billions into the market as they look for a quick profit.

One of those looking for a quick profit? None other than Tom Steyer, the liberal environmentalist who is hosting a $35,000 a plate fundraiser for President Obama and House Democrats tonight.

According to Carroll, Steyer is promising investors a high rate of return.

“Hedge fund firm Farallon Capital Management, whose billionaire owner Tom Steyer is hosting a $35,000 a plate fundraiser for President Obama tonight, is even promising its investors a 20 percent internal rate of return on its latest real estate fund.

 

But all this Fed-fueled cash pouring into the real estate market is pricing out middle- and lower-income home buyers. ‘I’ve never seen it like this before,’ Los Angeles real estate agent Leo Nordine told The Los Angeles Times. “There are so many investors buying right now it’s insane. The top 1% is buying up all the real estate.” And California is not alone. In Phoenix, 25 percent of all the region’s homes are now owned by investors, according to an Arizona Republic analysis. And just outside the Capitol in Prince George’s county, investors accounted for one-third of all home sales last year.”

 

As President Obama tiptoes towards a second economic collapse, it’s comforting to know that someone’s looking out for billionaires like Tom Steyer.