| highwaystar101 said: So poor people have very little money. Who knew? *Sigh* Bad times. |
Yes. The problem was that the poor people still got loans for nice big houses thanks to subsidies.
Not a smart thing to do. It did 2 things:
- Artificially boosted housing prices by drying up the inventory due to people that shouldn't own houses, buying.
- With price-boosted houses, it inflated the true value of houses, making it difficult for legitimate purchasers to buy houses and/or sell their houses once the market busted for a price that would cover their mortgage.
Because of the ineptitude of government's desire to give the poor unfair advantages, they have hurt many average Americans.
@Soleron -
I agree Bush and the administration did not make the right decisions. He should have recinded the Clinton-era modifications to the CRA which helped this situation become worse. This issue was Clinton and Bushes fault. I can only hope to God that somehow, somewhere, small-government politicians run in whatever party and gets votes. I recently blasted a politician's facebook (a Republican running for Secretary of State) because of passing more attempts to get more federal funding.
Back from the dead, I'm afraid.
