…And More Obama Doublespeak

Sunday, January 10, 2010
By PMA

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Another great one from last week’s National Review:

On the subject of banking, Barack Obama is in a debate with Barack Obama. (We hope he loses.) With unemployment persisting at painful levels, President Obama casts himself as the scourge of the “fat cats” — he has taken to the language of vacuous populism — castigating banks for making too many risky loans. At the same time, he dressed down a group of bankers, demanding they make more loans, which means riskier ones. Obama is correct that banks have restricted lending, and that this is a factor in unemployment. Banks are chary because they have been run through the wood-chipper, by the markets and by Obama, for making too many risky loans, e.g. subprime mortgages. Banks are especially unkeen on real-estate risk, so mortgage lending and refinancing are tight. The New York Times calls that a “volatile political issue,” which it is, largely because Obama & Co. are making it one. But our Janus-faced president cannot have it both ways: If the banks are to take on less risk, they must do so by raising their lending standards. That means fewer mortgages, especially for ACORN types without much cash or credit. It means tougher requirements and higher fees for mortgages and refinancing. It also means less credit for start-ups, small businesses, and business development — and that means fewer new jobs. Obama demands “extraordinary” lending, which is precisely what got us into this mess to begin with. Flip a coin, Mr. President.

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