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Posted on 02/27/2012 2:32:03 PM PST by VU4G10
Rick Santorum on Monday blamed the housing crisis on high gas prices.
During a campaign appearance in Michigan, Santorum said the housing bubble burst in 2008 because people could no longer afford to pay their mortgages because of high gas prices.
"We went into a recession in 2008 because of gasoline prices," Santorum said in Michigan according to Buzzfeed. "The bubble burst in housing because people couldn’t pay their mortgages because of $4 a gallon gasoline."
(Excerpt) Read more at thehill.com ...
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The guy needs help from his staff to prevent popping off and making loony statements.
People were struggling to pay the bills. Gas prices were up to $4+. That increases costs of not just gasoline, but shipping and other goods. Luxuries were not being bought, and credit cards were being maxed to pay for the essentials. Eventually, foreclosures kicked in with missed payments.
It didn’t help. The Fed cranking up interest rates to cool down the economy was probably a bigger factor.
Fannie Mae/Freddie Mac Hearings 2004
http://www.youtube.com/watch?v=Yga7TlsA-1A
Dim leadership at its best!
It think he is right but $4 gas was only the pin that pricked the bubble. If it wasn’t that it would have been something else.
People were struggling to pay the bills. Gas prices were up to $4+. That increases costs of not just gasoline, but shipping and other goods. Luxuries were not being bought, and credit cards were being maxed to pay for the essentials. Eventually, foreclosures kicked in with missed payments.
Seriously?
Sigh...
What’s looney about it. The gas prices going through the roof out of the blue really hurt a lot of people, especially those who were struggling to pay for home loans they shouldn’t have had in the first place. Many factors were involved but this one is always overlooked.
ungh......oh no.
Was bound to happen sooner or later.
Sort of the equivalent of "Some damn-fool thing in the Balkans.", pre-1914.
2008 was the year the GOP was screaming for the democrats to do vote on energy policy and Nancy took her minions and went on vacation. Our congressman was one of those who stayed in DC calling for the democrat return.
And yes, gas prices were in the $4 range. It was the biggest expense of my trip to the UP that year.
You are right. SOMETHING would have burst the bubble of millions of unsustainable mortgages.
There are a lot of people out there struggling to pay their mortgages.
High gas prices lead to higher prices for goods, such as food, and services.
No matter what, inflation hurts the economy even though the government pretends it doesn’t and pretends that food and services don’t fit into inflation.
Santorum is right here in a roundabout way. We are in deep doo doo again because of high gas prices. Food prices are rising fast.
If you are a person living on a fixed type income, you are feeling a lot of pain.
I totally agree. (on the $4 per gal gas kicking off the mortgage crisis) When you are filling two, or more, cars per week at $4 per gal. it really adds up. Suddenly there is no wiggle room in the budget. Then somebody loses a job and it’s crisis time.
Good grief! Pass the vodka. How does he get there?
Fannie and Freddie were fueled up for a crash under the Clintons, when Janet Reno with the force of law under her bosom, cheerfully and self-rightously forced banks and lending houses to lend to minorities and low income, or no income, and unfit for the deal they made at the desk of the lender.
Sheesh. Gaffe surge.
Seems like Santorum tends to over-reach on this stuff, although I am always on guard for the MSM trying to torpedo all Republicans.
Certainly gas prices didn’t help with the mortgage crisis, but to say we had the crisis “because” of gas prices rather than the CRA, Fannie/Freddie, low credit standards, etc., etc. is a reach. The housing bubble inflated home values by six figures in many cases - the net present value of the gas price increase was a rounding error next to that.
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