Subprime Intelligence

Obama the IdiotAmerica is suffering through trying times and such trying times called for men of character and intelligence to step up and lead the way to better days. Sadly for each and every American, we’re saddled with Obama and the boy has no character of note and an obviously subprime intelligence

Yes, it’s probably too much to ask that Obama to learn from history. One could, however, quite reasonably expect anyone approaching the average human intellect to be able to learn from current events.

Such expectations that Obama had the basic human capacity to learn and adapt seem to have misplaced. In the wake of the Subprime Mortgage Crisis that caused the Great Recession, Obama’s policies for the FHA have been to do the same thing again with the same borrowers who defaulted the last time.

After two foreclosures and two bankruptcies, Hermes Maldonado, a Honduran immigrant, recently qualified for an FHA loan for a home in the Los Angeles area.

“After everything that happened, thank God I was able to buy another house.”

Under Obama, the FHA has more and more backed new home loans to so-called rebound borrowers, those who have recently defaulted on previous mortgages. The agency is now allowing lower-income borrowers with extremely low credit scores to get loans a mere three years after foreclosure and with as little as 3% down. This has resulted 40% of newer FHA-backed loans being subprime.

The natural result of this stupidity is that a large percentage of these loans are more than 90 days delinquent and many more are actively in foreclosure.  These losses have depleted the agency’s reserve fund to 0.24% during fiscal 2011, which is barely more than one tenth of the Congressionally-mandated 2% level.

With cash reserves almost nonexistent and analysts predicting that over 30% of FHA backed mortgages will be in delinquency within the next five years it’s expected that FHA will need a taxpayer-funded bailout in the very near future – to the tune of over $50 billion.

I’ll give Obama and his handlers and sycophants credit though. They don’t do stupidity in a small way; theirs is a larger than life sort of idiocy.

Related Reading:

Principles of Applied Stupidity
The Mystery of Banking
Recession Proof
The Fall of America: Enemy Within (Book 3)
Why Smart People Do Stupid Things: A Field Guide to Understanding How the Amygdala Triggers Counterproductive Responses and Knowing How to Avoid Being Blindsided by Your Own Stupidity

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