Government responds to economic woes by making more bad mortgage loans
Independent Institute
by Robert Higgs
11/22/09
A sensible person, surveying all of this wreakage and pondering how such a debacle might be avoided in the future, certainly would have concluded that the government should cease and desist from artifically spurring the real estate market by subverting traditional underwriting standards for mortgage loans. Those standards include, for example, a substantial down payment, usually 20 percent, and well-documented sources of income sufficient to permit the buyer to service the loan, usually a steady job or substantial assets. During the crisis since mid-2008, however, the government has not done what a sensible person would have concluded it should do. Indeed, it has done the opposite...
http://www.independent.org/blog/?p=4069
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=real+estate
http://freepage.twoday.net/search?q=mortgage
http://freepage.twoday.net/search?q=Robert+Higgs
by Robert Higgs
11/22/09
A sensible person, surveying all of this wreakage and pondering how such a debacle might be avoided in the future, certainly would have concluded that the government should cease and desist from artifically spurring the real estate market by subverting traditional underwriting standards for mortgage loans. Those standards include, for example, a substantial down payment, usually 20 percent, and well-documented sources of income sufficient to permit the buyer to service the loan, usually a steady job or substantial assets. During the crisis since mid-2008, however, the government has not done what a sensible person would have concluded it should do. Indeed, it has done the opposite...
http://www.independent.org/blog/?p=4069
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=real+estate
http://freepage.twoday.net/search?q=mortgage
http://freepage.twoday.net/search?q=Robert+Higgs
rudkla - 23. Nov, 09:36
