Jackson50 on 30 September 2008
| fkusumot said: The government should be held accountable for trying to increase home ownership? That's about the same as saying the government should be held accountable for trying to increase employment. |
Yes, it should be held accountable for both if they create artificial demand. The government should be held accountable if it attempts to artificially increase wages. One of the ways the government creates artificial demand for home ownership is by lowering interest rates. This is foolish. Some people should not be encouraged to own homes unless they can afford it. This is why the government, mainly the Fed, caused this housing bubble.
