Remember the Global Financial Crisis that is still working its deadly way through the world's economy? If you were paying attention and not just lying in wait for your next handout from the Federal Government, you would recall that the whole thing started becasue of the collapse of some big financial institutions in the U.S. That collapse was caused by those same institutions making home loans to people knowing that they were unlikely to be able to pay them back- but they were backed by the U.S. Govenrment so what could go wrong?

So now it's all happening again, this time under President Obama. Unbelievable.

The Washington Post reports:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

 Read the full article here

The only thing that kept Australia afloat last time around was that the previous Liberal-National Government had managed to generate a huge swag of savings for the incoming Rudd Government to squander on their crazy schemes. Let's hope that the prospective Abbott Govenrment can turn around the deficits and again generate some real money in the bank before it all hits the fan again.

It is just possible that the Obama regime is even crazier than the Gillard outfit.