Government acting in the best interests of the US investor class which was busy getting rich from a epidemic of
mortgage fraud.
Yes. YOUR beloved government created the conditions. It made the rules.
The federal government has NO BUSINESS interfering in the housing market.
You can't have it both ways.
Certain people like to use Canada's situation regarding it's housing market.
Notice how there has been no 'burst' of any bubble. Simple reason is Canada does not use legislation to manipulate the marketplace. Canadians accept the fact that there are those who cannot afford to buy a home or lack the proper credit standing to be granted a mortgage. Those people rent. Period.
That's the way it should be here.
Sure, government programs for home buying such as FHA loans are good products because they do not lower credit status requirements.
My first loan was an FHA loan. We still had to have our credit in good standing.
I hope we agree government has BUSINESS policing the housing market?
From 2004:
"In the 1980s, many Savings and Loans failed because of poor management, risky loans and investments, and in some cases, fraud. Taxpayers were left with a $132 billion tab to cover federal guarantees to S&L customers.
"The FBI has dispatched undercover teams across the country in an urgent investigation into dealings by suspect mortgage brokers, appraisers, short-term investors, and loan officers, Swecker, flanked by FBI executives and Justice Department prosecutors, revealed.
"In one operation, six individuals were arrested Thursday in Charlotte, charged with bank fraud for their roles in a multimillion-dollar mortgage fraud, officials said. The two-year investigation found fraudulent loans that exposed financial institutions and mortgage companies to $130 million in potential losses, they said.
"Also Thursday, federal agents in Jacksonville arrested two people and executed seven search warrants in connection with an alleged scheme designed to defraud banks of $22 million, officials said.
"The number of open FBI mortgage fraud investigations has increased more than five-fold in the past three years, from 102 probes in 2001 to 533 as of June 30 this year, the FBI said. The potential losses are staggering, and many financial institutions are cooperating with investigators.
"Officials noted mortgage industry sources have reported more than 12,000 cases of suspicious activity in the past nine months, three times the number reported in all of 2001."
CNN.com - FBI warns of mortgage fraud 'epidemic' - Sep 17, 2004
Politicians serve the investor class by lowering lending standards, for example.
The same politicians bail out the architects of the control accounting frauds that crashed the economy in 2008.
My solution is to insulate government from the effects of private wealth on public policies; more democracy NOT government.
What's yours?