There are dumb ideas and then there’s whatever this is.
Alexandria Ocasio-Cortez and Bernie Sanders have teamed up to introduce the idea of “non-profit banking services” done via the post office, where sub-prime loans would be given out to people who are terrible credit risks, thereby causing high default rates. Because absolutely nothing bad could come of that.
Wait, didn’t we have a financial crisis the last time this was tried?
So AOC not only says the government should be in control of banking, but she says that it should be done through the Postal Service.
Not a joke:
The U.S. Postal Service lost $3.6 BILLION in the 2018 fiscal year.pic.twitter.com/u5aGwYfKvD
— Caleb Hull (@CalebJHull) May 9, 2019
Banks make record profits discriminating against people of color and denying basic banking services to 63 million adults who are unbanked or underbanked.
We must allow every post office to offer basic, affordable banking services and end lending discrimination once and for all.
— Bernie Sanders (@BernieSanders) May 9, 2019
This is simply moronic and I don’t use that term lightly.
No one “discriminates” against people of color when it comes to loans. Banks want to turn a profit, full stop. That’s their only motivator. They don’t care if you are purple. The reason minority groups have a harder time getting loans is because they include higher rates of individuals who do not have the credit nor capital to be lent to. Loans are not handouts or a right. They exist with the sole supposition being that the person given the loan must pay it back with interest. Handing out loans to high credit risks is how you get a crash like we had in 2008.
Yet, here’s AOC and Bernie suggesting that not only should banks give out junk loans, but that the Postal Service should be doing the lending. That’s the same Postal Service that lost $3.6B last year alone. Now these two socialists want them to take on even more losses via giving out bad loans? It’s completely insane.
Never mind how big of an invasion of privacy it would be for the government to have round the clock, full access to everyone’s banking records.
What’s happening here is obvious though. AOC is just a crazy person, but Bernie is doing this to help bolster his floundering Presidential campaign. Biden has stepped in and cleaned his clock since announcing. Bernie is now losing to Elizabeth Warren in some polls. He needs to get back in the news and this is his way of doing so.
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