Seeking to reinflate the bubble

The Obama administration is looking to resume the same policies that brought us the housing bubble, the housing crash, and the recession:

In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.

Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says.

Compare this with Bill Clinton’s interventionist housing policies that caused the housing bubble in the first place, and see if you can see any difference.

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