EVERYTHING OLD IS NEW AGAIN! Stephen Moore: Biden Housing Scheme Could Ignite Another 2008 Mortgage Crisis.

Politicians in Washington have very short memories, so they repeat the same mistakes over and over.

It was only 17 years ago that the “subprime” mortgage crisis torpedoed the economy and sent the financial markets into the biggest tailspin since the Great Depression. Millions of Americans lost their jobs. One of the matches that lit that bonfire was Freddie Mac and its cousin, Fannie Mae, offering generous, taxpayer-guaranteed mortgage insurance to risky borrowers on loans with low down payments.

It all blew up in the faces of the taxpayers even though the Washington experts said the chances of these mortgages going bust and taxpayers taking a loss was less than one in a thousand.

The biggest taxpayer bailouts went not to the Wall Street banks and investment companies but to Fannie and Freddie.

Here we go again. The latest scheme by the Biden administration is to encourage families to borrow more money by using the equity in their home as collateral. Home equity loans are often very risky. If prices fall, home equity can become negative. There is nearly $18 trillion in home equity, and it’s one of the largest sources of savings and ownership for American families.

Now the Biden administration wants to encourage Americans to borrow even more at a time when credit card and auto debts are at an all-time high. If homes fall in value, families could slip underwater and default — just like during the subprime crisis.

As The Wall Street Journal points out, the other “likely losers” from this scam “would be taxpayers.” The evidence is indisputable from 2008 that the mortgages that ended in default were low-down-payment and low-equity loans.

Of course, if Biden times it right, it blows up early after his re-election, and the press will do their best to bury the result (and/or break out their FDR metaphors and “Depression Lust”). Or it blows up during the second Trump administration, and the press will assign him the blame.

Plus a related “Unexpectedly:” Consumer sentiment unexpectedly falls to lowest level in months.