Posted on 07/10/2009 8:00:36 PM PDT by Shellybenoit
This Past Tuesday the Republican Members of the House Committee on Oversight and Government Reform released a staff report that provides the reasons for the Housing Bubble Burst 2007. The Report finds that the housing bubble burst that led to a financial crisis can be traced back to federal government intervention, pushed by the Democratic party, in the U.S. housing market.
“The spin on the financial crisis by those who favored government efforts to erode lending standards is that the housing bubble didn’t cause this recession,” said Rep. Darrell Issa the Committee’s Ranking Member. “The findings in this report should remind this Congress that ignoring the role of politics and government in causing the housing crisis and the economic collapse while pursing other regulatory reforms will not fix the underlying problem.”
Government intervention “created ‘affordable’ but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention created a cabal of vested interests – politicians, lenders and lobbyists – who profited from the ‘affordable’ housing market and acted to kill reforms."
(Excerpt) Read more at yidwithlid.blogspot.com ...
That is one of the best summaries of the “housing bubble” I have seen.
hey lets hear it for dodd and frank...... they can take the credit/punishment for this...... what goes around......
They should be sharing a cell with Madoff for 150 years. Add Pelosi and Reid to the cell as well.
You’re right - if he deserves it so do they big time! From RE foreclosures, home equity gone for others, to unemployment to bankruptcy for millions. It’s negative effect on business’ - some shutting down altogether. Much worse than Madoff, IMO.
"Why the Mortgage Crisis Happened"
http://www.americanthinker.com/2008/10/what_really_happened_in_the_mo.html
We are talking about entire generations whose credit is wiped out for at least a decade. Do the math about what a lousy credit score can and will do to a person and you can quickly see that there is simply no easy or fast way out of this mess. The claims that the recession is easing are outright lies because things have yet to get really bad...
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