How to do your best to make sure that banks won't lend out money

Does anyone understand how counterproductive this policy is? If you make these loans riskier, fewer loans will be given out and the interest rate will rise. See a related earlier discussion here.

President Obama will not sign into law a bill that would allow foreclosure documents to be accepted among multiple states, the White House said Thursday, arguing that it will make it easier to foreclose on homes.

But supporters of the legislation say the technical fix does nothing to accelerate the chance homeowners will face foreclosures, and the president doesn't even have the authority to "pocket veto" the legislation.

A "pocket veto" is a tactic that allows the president to not sign legislation while Congress is out of session, forcing it to go back to Capitol Hill. Supporters of the bill say the president can'teven use the measure because technically the Senate is not adjourned.

The bill had been criticized by consumer advocates and state officials who said it would make it difficult for homeowners to challenge foreclosure documents prepared in other states.

White House chief spokesman Robert Gibbs said Thursday that officials across the country had raised concerns about "unintended consequences" from the bill. The administration would work with Congress to revise it, he said. . . .

NPR has a leftwing defense of the veto here. What opponents see as the ability to mass produce documents is actually efficiency.