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Heavy-Handed Politics

"€œGod willing, with the force of God behind it, we shall soon experience a world
without the United States and Zionism."€ -- Iran President Ahmadi-Nejad

Sunday, September 21, 2008

Guess again who's to blame for U.S. mortgage meltdown

Analysts point not to greed, but to social activist politics
By Drew Zahn

While many pundits are pointing to corporate greed and a lack of government regulation as the cause for the American mortgage and financial crisis, some analysts are saying it wasn't too little government intervention that cased the mortgage meltdown, but too much, in the form of activists compelling the government to pressure Freddie Mac and Fannie Mae into unsound – though politically correct – lending practices.

"Home mortgages have been a political piñata for many decades," writes Stan J. Liebowitz, economics professor at the University of Texas at Dallas, in a chapter of his forthcoming book, Housing America: Building out of a Crisis.

Liebowitz puts forward an explanation that he admits is ......


  • You shouldn't use WND as a source; they're notoriously inaccurate. For instance, in this story, Drew Zahn states, and I quote:

    The Wall Street Journal quoted Congressman Barney Frank, D-Mass., in 2003 as criticizing Greg Mankiw "because he is worried about the tiny little matter of safety and soundness rather than 'concern about housing.'"

    Frank, chairman of the House Financial Services Committee, rejected a Bush administration and Congressional Republican plan for regulating the mortgage industry in 2003, ...

    Here's the problem: Mike Oxley was chair. And Zahn completely ignores the Bush Administration overhaul of Freddie and Fannie in 2003; the overhaul of Freddie and Fannie proposed by a GOP Administration and passed by a GOP Congress.

    By Blogger Bounced Checks Berg, at 1:15 AM  

  • Twoputt - This is an interview article and not an opinion article that you base your decision on. There are many other sources that confirm the very points this article makes.

    Great article HH - this one does a far better job of clearly stating what has brought us to this point.
    It does fail to point to one other key factor, foreign investors. The market has been brought down by both poor financial practice on the front side of the industry but also a sudden change in foreign investment dollars supporting the back side of the industry. It can be portrayed as a three legged stool with two legs being cut off.

    By Anonymous Anonymous, at 11:55 AM  

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