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 it the result of inadequate government intervention? No! It was the direct result of government regulation. Big government forced private lenders to lower their standards so that blacks and latinos could have easier access to mortgages and to housing.

Glenn C. Altschuler writes:

In Reckless Endangerment, Gretchen Morgenson, a business reporter for The New York Times, and Joshua Rosner, author of Housing in the New Millennium, provide a smart, sharp and searing analysis of the origins of the financial crisis.

It began, they suggest, with the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, which required government-backed mortgage finance companies Fannie Mae and Freddie Mac to direct 30 per cent of their loans to low and middle-income families and another 30 per cent to units in inner cities.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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