Yeah, the Federal Government mandating massive numbers of mortgages issued to people with no ability or intention of ever paying their home loans had no role in the housing collapse.
Excuse me while my head explodes.
This “economist” is the usual democrat party fake scientist, like their global warming charlatans.
I love how the rebuttal to what you just said always points to the fact that a significant amount of loans from the Mortgage meltdown were not part of CRA.
It still doesn’t matter. The Gov’t through Fannie, Freddie, FHA SET the market with their “no money down” loans. Reselling those loans obviously multiplied this situation.
If the Gov’t had not driven down the loan requirements the hot potato effect never really gets to take hold, IMO, because the supply won’t be there—there would be a minimal amount of “risky” loans to lump in with the rest.
I got a conventional loan in 2001, that was required at 3%. We paid more than that, but many years prior we would have had to pay 20%. What happened? The gov’t SET the market!
(I’ll take any additional information, as I know there are other people who are far more of a student of this mess than I.)