Posted By LambChop
From The Washington Post:
President Obama is about to roll out a new round of executive orders, one of which will allow homeowners to refinance their mortgages. Obama will use these executive orders to by-pass congressional duty and his constitutional authority to willfully expand the powers of the Executive branch to absurd proportions.
Obama reportedly also has plans for additional executive orders to new further promote “rights” for gays and lesbians (“protecting” gays in the workplace); to regulate corporate cyber security issues; to continue his campaign of environmental regulation by forcing buildings to be more “energy-efficient”; and to deliver the final death blow to existing coal-fired power plants with new regulations.
“It is a very dangerous road he’s going down contrary to the spirit of the Constitution. Just because Congress doesn’t act doesn’t mean the president has a right to act.” ~Sen. Charles E. Grassley (R-Iowa)
Obama apparently believes that an executive order to allow more than 11 million “struggling homeowners” to refinance at today’s ultra-low interest rates will boost the housing market, regardless of the fact that today, 90% of loans are government- backed (Fannie Mae and Freddie Mac) and 40% of those loans are already subprime.
Obama’s blatant disregard of the causes of the financial crises in 2008 ignores the fact that the crash of the housing market and banks left holding “bad paper” (subprime loans) catapulted the U.S. into the worst financial crisis since the Great Depression.
Obama previously used executive powers to make refinancing easier for those with loans already guaranteed by Fannie Mae and Freddie Mac. His new plan will extend this order to include privately backed mortgages.