News

New housing bubble: Obama proposes lowering mortgage-lending requirements

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I must have blogged a million times about how the Democrats caused the recession by forcing banks to make bad loans to people who couldn’t pay them back. Although the Republicans got blamed for the crisis, they were the ones who tried to regulate Fannie Mae and Freddie Mac, but they were shut down by Democrats. Well, guess what? The Democrats didn’t learn their lesson the first time, and they want to start another housing bubble, just like the first one that gave us the recession.

Take a look at this article in the leftist Washington Post. (H/T ECM)

Excerpt:

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.

[…][A]dministration 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.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.

“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.

And if that was not enough,the Democrats also have another bubble being inflated. They nationalized the student loan industry, and now taxpayers are going to have to bail out those risky unpaid student loans as well.

Excerpt:

America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.

[…]With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.

To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn’t include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.

And liberals in Congress have proposed forgiving all student loans via “The Student Loan Forgiveness Act 2012,” costing taxpayers $1 trillion.

Adding another $1 trillion dollars to the national debt isn’t exactly “forgiveness” for young people—it’s prolonging the payoff. In fact, student loan bailouts are a catch-22 for young people because they’re going to be held accountable for paying off the national debt and interest payments.

At least the young people who voted for Obama are going to be the ones to get the bill for his socialist economic policies.

Related posts

Podcasts

William Lane Craig and atheist Daniel Dennett discuss cosmology and fine-tuning

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This audio records a part of the Greer-Heard debate in 2007, between prominent atheist Daniel Dennett and lame theistic evolutionist Alister McGrath. Craig was one of the respondents, and this was the best part of the event. It is a little bit advanced, but I have found that if you listen to things like this over and over with your friends and family, and then try to explain it to non-Christians, you’ll get it.

By the way, this is mostly original material from Craig, dated 2007, and he delivers the speech perfectly, so it’s entertaining to listen to.

Craig presents three arguments for a Creator and Designer of the universe:

  • the contingency argument
  • the kalam cosmological argument
  • the teleological argument

He also discusses Dennett’s published responses to these arguments.

Dennett’s response to Craig’s paper

Here is my snarky paraphrase of Dennett’s reponse: (this is very snarky, because Dennett was just awful)

  • Craig’s three arguments are bulletproof, the premises are plausible, and grounded by the best cutting edge science we know today.
  • I cannot find anything wrong with his arguments right now, but maybe later when I go home it will come to me what’s wrong with them.
  • But atheism is true even if all the evidence is against it today. I know it’s true by my blind faith.
  • The world is so mysterious, and all the science of today will be overturned tomorrow so that atheism will be rational again. I have blind faith that this new evidence will be discovered any minute.
  • Just because the cause of the beginning of time is eternal and the cause of the beginning of space is non-physical, the cause doesn’t have to be God.
  • “Maybe the cause of the universe is the idea of an apple, or the square root of 7”. (HE LITERALLY SAID THAT!)
  • The principle of triangulation might have brought the entire physical universe into being out of nothing.
  • I don’t understand anything about non-physical causation, even though I cannot even speak meaningful sentences unless I have a non-physical mind that is causing my body to emit the meaningful sentences in a non-determined manner.
  • Alexander Vilenkin is much smarter than Craig and if he were here he would beat him up good with phantom arguments.
  • Alan Guth is much smarter than Craig and if he were here he would beat him up good with phantom arguments.
  • This science stuff is so complicated to me – so Craig can’t be right about it even though he’s published about it and debated it all with the best atheists on the planet.
  • If God is outside of time, then this is just deism, not theism. (This part is correct, but Craig believes that God enters into time at the moment of creation – so that it is not a deistic God)
  • If deism is true, then I can still be an atheist, because a Creator and Designer of the universe is compatible with atheism.
  • I’m pretty sure that Craig doesn’t have any good arguments that can argue for Christianity – certainly not an historical argument for the resurrection of Jesus based on minimal facts, that he’s defended against the most prominent historians on the planet in public debates and in prestigous books and research journals.

I was in the second row at the Baylor Conference on intelligent design when Guth debated Craig on the origin of the universe. Guth admitted afterwards that the universe did require a cause.

I do not recommend purchasing the whole 2007 debate, because McGrath is a squish. You’re better off with the 2005 and 2008 sets. The 2006 one is OK, but not great. I don’t have the 2009 one yet, but it looks good.

Podcasts

Philip E. Johnson lectures on science, evolution and religion

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I found this fun lecture by the grandfather of the big-tent intelligent design movement, Berkeley law professor Philip E. Johnson.

I’ll bet you guys have all heard of him, but you’ve never heard him speak, right? Well, I was a young man, I used to listen to Phil’s lectures and his debates with Eugenie Scott quite a bit. This is one of my favorite lectures. Very easy to understand, and boilerplate for anything else in the origins debate. This is a great lecture – funny, engaging and useful. You will definitely listen to this lecture several times if you listen to it once.

The MP3 is here. (91 minutes, 62 megabytes)

The Inherit the Wind stereotype

  • Many people get their understanding of origins by watching movies like “Inherit the Wind” (or reading science fiction)
  • The actual events of the Scopes trial are nothing like what the movie portrays
  • The law forbidding the teaching of evolution was symbolic, not meant to be enforced
  • The actual Scopes trial was a publicity stunt to attract attention to Dayton, TN to bring business to the town
  • The ACLU advertised for a teacher who would be willing to be sued
  • They found a substitute physical education teacher who would be willing to “break” the law
  • The movie is nothing like the actual events the movie is a morality play
  • The religious people are evil and stupid and ignorant and bigoted
  • The scientists and lawyers are all intelligent, romantic, and honest seekers of the truth
  • The religious people think that the Bible trumps science and science is not as reliable as the Bible
  • The movie argues that the reason why there is ANY dissent to evolution is because of Biblical fundamentalism
  • The movie presents the idea that there are no scientific problems with evolution
  • The movie says that ONLY Biblical fundamentalists who believe in 6 day, 24-hour creation doubt evolution
  • The movie says that Biblical fundamentalism are close-minded, and not open to scientific truth
  • The movie says that people who read the Bible as making factual claims are misinterpreting the Bible
  • The movie says that smart people read the Bible for comfort and feelings and arbitrary values, not for truth

Guided evolution and methodological naturalism

  • What scientists mean by evolution is that fully naturalistic, unguided, materialistic mechanisms caused the diversity of life
  • Scientists do not allow that God had any real objective effect on how life was created
  • Scientists think that nature did all the creating, and any mention of God is unnecessary opinion – God didn’t DO ANYTHING
  • Scientists operate with one overriding rule – you can only explain the physical world with physical and material causes
  • Scientists DO NOT allow that God could have done anything detectable by the sciences
  • Scientists WILL NOT consider the idea that natural, material processes might be INSUFFICIENT for explaining everything in nature
  • You cannot even ask the question about whether natural laws, matter and chance can explain something in nature
  • Intelligent causes can NEVER be the explanation for anything in nature, and you can’t even test experimentally to check that
  • Scientists ASSUME that everything can be explained with natural laws, matter and chance – no questioning of natural causes is allowed
  • Where no natural explanation of a natural phenomenon is available, scientists SPECULATE about undiscovered natural explanations
  • The assumption of naturalistic sufficiency is called “methodological naturalism”
  • To question the assumptions that natural is all there is, and that nature has to do its own creating, makes you an “enemy of science”
  • But Johnson says that naturalists are the enemies of science, because they are like the Biblical fundamentalists
  • Naturalists have a presumption that prevents them from being willing to follow the evidence where it is leading
  • Experiments are not even needed, because the presumption of naturalism overrides any experimental finding that falsifies the sufficiency of natural causes to explain some natural phenomenon

What can natural selection and mutation actually do?

  • what evolution has actually been observed to do is explain changing populations of moths and finches
  • finches with smaller or larger beaks are observed to have differential survival rates when there are droughts or floods
  • no new body plan or new organ type has been observed to emerge from these environmental pressures
  • the only kind of evolution that has been observed is evolution within types – no new genetic instructions are created
  • in textbooks, only confirming examples are presented – but what is required is a broad pattern of gradual development of species
  • if you look at the fossil record, what you see in most cases is variation within types based on changing environments
  • the real question is: can natural law and chance be observed to be doing any creating of body plans and organ types?

What kind of effect requires an intelligent cause?

  • the thing to be explained in the history of life is the functional information sequences
  • you need to have a sequence of symbols or characters that is sufficiently long
  • your long sequence of characters has to be sequenced in the right order to have biological function
  • the only thing that can create long sequences of functional information is an intelligent cause
  • intelligent design people accept micro-evolution – changes within types – because that’s been observed
  • the real thing to be explained is the first living cell’s functional information, and the creation of new functional information

Critical response

The next 15 minutes of the lecture contain a critical response from a philosophy professor who thinks that there have been no developments in design arguments since Aquinas and Paley. He basically confirms the stereotypes that Johnson outlined in the first part of the lecture. I recommend listening to this to see what opposition to intelligent design really looks like. It’s not concerned with answering scientific questions – they want to talk about God, the Bible and Noah’s ark. It’s our job to get people like this critic to focus on the science.

Here’s my snarky rendition of what he said:

1) Don’t take the Bible literally, even if the genre is literal.

  • all opposition to evolution is based on an ignorant, fundamentalist, literal reading of the Bible
  • the Bible really doesn’t communicate anything about the way the world really is
  • the Bible is just meant to suggest certain opinions and experiences which you may find fetching, or not, depending on your feelings and community
  • if Christians would just interpret the Bible as myths and opinions on par with other personal preferences, then evolution is no threat to religious belief

2) As long as you treat the design argument as divorced from evidence, it’s not very effective

  • the latest and best version of the design argument is the old Paley argument which involves no experimental data, so I’ll critique that
  • this 200-year old argument which doesn’t rely on science has serious problems, and unnamed Christians agree with me!
  • Christians should NOT try to prove God’s existence using evidence from the natural world (as Romans 1 says), and in fact it’s “Pelagianism” to even try
  • Christians should divorce their faith from logic and evidence even though the Bible presents faith as being rooted in reason and evidence
  • Christians should not tie their faith to the science of today, because science is always changing and the theism-friendly evidence of today might be overturned tomorrow
  • It’s a good idea for me to critique the arguments of 1000-year old people who did not know anything about the cosmic fine-tuning argument – that’s fair!
  • I find it very useful to tell people that the argument from design is false without mentioning any design arguments from DNA or cosmic fine-tuning
  • We need to assume that the natural world is explainable using only natural causes before we look at any evidence
  • We should assume that natural causes create all life, and then rule out all experimental evidence for intelligent causes that we have today
  • As long as you accept that God is a personal opinion that has nothing to do with reality, then you can do science
  • The non-Christian process theologian Teilhard de Chardin accepts evolution, and therefore so should you
  • Remember when theists said God caused thunder because he was bowling in the clouds and then we found out he didn’t? Yeah well – maybe tomorrow we’ll find out that functional sequences of amino acids and proteins have natural causes! What would you do then?

3) What the Bible really says is that you should be a political liberal

Q&A time

The lecture concludes with 13 minutes of questions.