“We can put light where there’s darkness, and hope where there’s despondency in this country. And part of it is working together as a nation to encourage folks

“We can put light where there’s darkness, and hope where there’s despondency in this country. And part of it is working together as a nation to encourage folks to own their own home.” http://www.nytimes.com/2008/12/21/business/21admin.html?hp http://www.nytimes.com/2008/12/21/business/21admin.html?hp But it's more complicated than that. The government subsidized housing speculation through tax cuts, subsidized mortgage security speculation through Fannie Mae/Freddie Mac's implicit guarantee, created artificial liquidity through the Fed that allowed the stock/commodity/housing bubble that just popped. “Tonight, I propose a new tax cut for homeownership that says to every middle-income working family in this country, if you sell your home, you will not have to pay a capital gains tax on it ever — not ever.” http://www.nytimes.com/2008/12/19/business/19tax.html http://www.nytimes.com/2008/12/19/business/19tax.html The one regulation that they removed (and shouldn't have) dealt with leveraging requirements.