Forget about banks being Too Big to Fail — or, per Attorney General Eric Holder, Too Big to Jail. As the Obama administration tries to restart some of the same bad decision-making that created the last housing crisis, any banks coerced into re-inflating a housing bubble may be able to say the system was Too Rigged for Them to Fail/Be Jailed. From the Washington Post:
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.
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.
In response, administration officials say they are working to