Here are questions asked on the FM website this week (some of these were assertions, which I’ve rephrased at questions). Click on the question to go directly to the answer. Did FNMA and the other Government Sponsored Enterprises cause the sub-prime mortgage crisis? Did the Community Reinvestment Act cause the housing crisis? (1) Did FNMA and the …
Slowly America comes to grip with the terrible decisions necessary to solve the housing crisis. We have too many vacant homes, the key driver of the housing crisis. A surplus of anything leads to falling prices until the surplus disappears, one of the iron laws of economics. Yet even now this is not understood by …
One of the most fascinating narrative threads on this site has been about the oversupply of homes (technically “housing units”). This over-building of units is the key to the housing crisis, as has been evident for at least 2 or 3 years. A surplus of anything leads to falling prices until the surplus disappears, one …
The housing crisis allows America to look in the mirror. What do we see? Read More »
In my post on 18 September, “A vital but widely misunderstood aspect of our financial crisis“, I made a radical proposal: Here is one way the government can fix the housing crisis: buy and destroy homes. The government did this with food during the Depression, to help farmers by increasing food prices. That was tough on food …
Knocking down houses in order to save the village Read More »
This is an absolute must-read for every American citizen, a wonderful snapshot – a partisan and partial picture — of the dynamics that have brought America to one of the most severe crises in out history. A collusion between both parties, the finance industry, and the real estate industry. They made uncounted millions on this public-private …
A must-read for every American citizen: “The Fannie Mae Gang” Read More »
