Obama Lying Again: 71% of Bad Loans Were Govt Loans – The Parable of Johnny

Barack Obama is in the middle of a presser regarding a nomination he wants. He is taking questions and said this: (paraphrased) People got housing loans that they did not understand that they could not afford. They were told they could afford them. They didn’t understand the paperwork they were signing. What a crock. The Community Reinvestment Act forced banks to lend without credit, without down payments, without any assurance that the buyers could meet their monthly payments. He is a bold, blatant liar. Just sayin…

The Community Reinvestment Act

Most of the subprimes loans were government loans – 71% of them! Seventy-one percent of the bad loans were not made by Wall Street. I remind everyone of the Parable of Johnny.

The “Parable of Why Johnny Can’t Borrow:”

One day, Johnny woke up and decided to buy a house. But Johnny did not have enough money to buy a house. So he went to someone who did have enough money: Mr. Capitalist.

“Mr. Capitalist,” asked Johnny, “could you please loan me the money to buy a house?”

“Do you have good credit, a down payment, or proof of income?” asked Mr. Capitalist.

“No,” replied Johnny.

The End

And the end of the Global Financial Crisis. Source: Michael Prell at The Daily Caller

For more: Tracking the Mess of Fannie and Freddie

Thanks to RedPlanetCartoons.com for the brilliant graphic!

Published by Maggie @ Maggie’s Notebook