Tag Archives: boom and bust

President Obama Today Blamed Wall Street Greed For Economic Collapse

Was Wall Street any less greedy ten years ago? Or 20 years ago? When politicians pass new welfare benefits, is that greedy? When politicians force banks to lend to politically connected minorities with lousy credit, is that greedy? Dennis Prager … Continue reading

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Obama’s Justice Department Forces Lenders To Make Bad Loans

The primary cause of the housing boom and bust? Big government telling banks how to invest their money. Instead of choosing for themselves the most profitable investments, banks had to open up branches in bad areas and to extend loans … Continue reading

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Rick Perry Did A Public Service By Attacking Federal Reserve

A major cause of the housing boom and bust was cheap money. President Bush was a cheap money/weak dollar president and the housing boom and bust was one of the prices we paid for overly low interest rates. Under President … Continue reading

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Easy Credit, Easy Go – The Housing Boom And Bust

The housing boom was built on restrictions on land use in coastal California and other places, reducing the available amount of land to develop, and the enforced lowering of mortgage lending standards. Who drove this lowering of lending standards? Was … Continue reading

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Politicians Lick Their Chops At Opportunity To Plunder Banks

Banks are overwhelmed by foreclosures. Banks lose on average $40,000 per foreclosure wrote Dr. Thomas Sowell in his recent book on The Housing Boom and Bust. Banks don’t want to be in the real estate business. They want to be … Continue reading

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Banks Remained Overwhelmed By Foreclosures

According to Dr. Thomas Sowell’s book, The Housing Boom and Bust, banks lose about $40,000 per foreclosed home. Banks do not want to be in the real estate business so they unload foreclosed homes as rapidly as possible. The longer … Continue reading

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Capitalism: A Love Story

I’m watching this 2009 documentary by Michael Moore about the 2008 economic crash. It starts with heartbreaking scenes of families being evicted from their homes. Well, I know it feels bad to watch this, but if you don’t own something … Continue reading

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The Housing Boom and Bust: Revised Edition by Thomas Sowell

Get the book here. People charged higher interest rates than average also have higher rates of payments, defaults and foreclosures. The market has accurately assessed the risks. (Pg. 6) From Pg. 16-17: While housing payments often made up more than … Continue reading

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The Dismal Results Of Home Affordable Modification Program (HAMP)

Government intervention to provide cheap money, lowered lending standards and massive land-use restrictions caused the housing boom and bust. Now we have Home Affordable Modification Program (HAMP) which seeks to soften the blow of people buying more home than they … Continue reading

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The More The Government Intervenes, The Worse The Housing Market Gets

The housing boom and bust was caused by government policies such as local land-use policies which reduced developable land, policies to lower standards for mortgage lending, forcing lenders to lend to risky borrowers who happened to be poor and/or minorities, … Continue reading

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