Today, the Federal Reserve Chairman, Ben Bernanke stated that the housing fiasco is creating a "significant drag" on the nation's general economy.
US Treasury Secretary Paulson warns us that the damage is yet to come and that the housing downturn will "adversely impact our economy" while stating that the actions of some mortgage market participants is "shameful"
There is blame going around and around with everyone's fingers getting stiff from all the pointing.
It's my turn.
1 In 2004 the Federal government called for increasing available affordable housing by 7 Million units by the year 2014
2. In 2004 the Federal Government called for lower taxes and less burdensome regulations on entrepreneurs; and policies to eliminate barriers to homeownership.
3. In 2004 The President proposed supporting low-income families who are saving for a down payment, and ensuring that good financing options are available.
4. In 2004 The President proposed Regulatory reforms in order to open doors for millions of American families who want to buy or rent an affordable home in the community of their choice
5. In 2004 President Bush "Challenged" the private sector by calling upon the housing industry, including the, Federal Home Loan Banks, the homebuilders, and the mortgage and finance industry to join with Federal, State, and local governments to help America meet the goal of increasing the supply of affordable housing.
6. In 2002 The President announced the "American Dream Down payment Initiative."
7. In 2005 The President proposed the "Zero-Down payment Initiative"
Ok.... I'm getting tired of looking up these references but, I guess that a pattern is beginning to emerge....
What EXACTLY did Our leaders think was going to happen when you give people with NO credit history, BAD credit history NO money for a down payment even... what ammounts to carte blanche in joining the millions of responsible home owners that got theirs the "old fashioned way"
I think that it's time that the fingers started pointing inwardly.
Referenced from http://www.whitehouse.gov/news/releases/2004/09/20040902-5.html