Forced Lending "Guidelines" Is Nuts

Chuckie Schumer and cohorts are out to force financial institutions who received bailout money to lend more money.

A federal guidance document could be released this week.

"Some details are still being worked out, but the primary goal of the guidance document is to increase lending, which has seized up as a result of the financial crisis in recent months. Experts believe the economy will not begin to recover until the loan markets are working again. Yet, by increasing their lending, banks could expose themselves to more losses. In the economic downturn, people most eager to borrow increasingly are considered the most risky."

This is exactly what happened to Fannie Mae and Freddie Mac. Democrat lawmakers pressured and forced risky loans in the name of "fairness" to people who couldn't afford them and couldn't pay them back.

Loan markets will work again when the housing / mortgage crisis is stabilized.

Banks who ignore the federal guidelines are subject to "sanctions". A Chuck Schumer threat by any other name.