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That was (and is) the ironic thing about all the government sponsored home ownership programs and legislation. They pumped up demand at an unreasonable rate, c
by walkon 16y ago
That was (and is) the ironic thing about all the government sponsored home ownership programs and legislation. They pumped up demand at an unreasonable rate, causing ever increasing prices, which made it harder to afford a house, which prompted further government stimulation...an endless loop, at least until the fiat charade ends.
- anigbrowl 16y agoSo why didn't the banks try to throttle the supply? It's funny, I don't recall any CEOs complaining about the economy being driven off a cliff in the runup to the bust. On the contrary, I was astonished at their readiness to give money away. Don't you recall the endless stream of refinancing commercials on TV? shows like 'flip that house'? The way everyone and their dog suddenly seemed eager to have a realtor's license? The guy at my local pizza shop had his realtor business cards on the counter next to the delivery menus. Edit: I see the truth is uncomfortable for some people. But the fact is that government promotion of home ownership is one thing, and instant approval of jumbo loans with 0% down are quite another. I got burned in a property boom when I was about 20 and this time I decided to stay out of the market.