But Congress just figured out that government meddling put us where we are, economically.
The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable†but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage.
That is the key paragraph from the Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 report, the pdf of which is here.
Their plan to make sure this never happens again: More government intervention!
I keep hearing the echos of the phrase “Again! Harder, try it harder!” echoing through my head.
Found via Mark J. Perry
This problem was caused by goverment meddling! The solution? More government meddling!
*headdesk*
We continue to be so boned.
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