The housing market is developing a massive bubble that will burst sometime this year. And before anyone attacks this as partisan, I'm not blaming any particular party for this. This is business as usual in this country. We create bubbles, kick the can down the road, and then taxpayers foot the bills of banks. That's bipartisan.
There has only been one massive housing bubble in my lifetime and that was W's huge bubble. There have been periods where prices rose, and periods where they didn't, but not a time when the housing market outright crashed and millions of foreclosures happened. The only other time it happened was the Great Depression. I wasn't born then.
W's bubble wasn't bi-partisan at all. It was all on the combination of low interest rates after 9/11, the 2003 American Dream Downpayment Act, and the de-regulation of Wall Street and subprime mortgages, written and passed by the Republican Congress and signed into law by Bill Clinton.
The first thing Trump did when he got into office was to roll back banking regulations put into place to prevent another banking collapse from happening. But with this stimulus, Biden is refusing to allow Republicans to limit and strangle the stimulus, and forcing workers back to work without living wages, like happened last time.
Republicans want a hungry and needy working class who are willing to take any job no matter how little it pays, because something is better than nothing. That's exactly what Mitch McConnell told us when Democrats wanted to sent checks to working Americans. Shouldn't McConnell want a strong and thriving middle class. It's the key to success economies throughout the first world.
Republican economics has slashed the middle class, driving millions of Americans back into poverty.
www.cnbc.com
