For some reason I feel like this is a good time to review what we can expect when our government and its agencies attempt to create wealth out of thin air. We can see the absurdity and hubris of our policymakers who believe they can circumvent economic laws in the following excerpt from the ‘The National Homeownership Strategy: Partners in the American Dream’. This is a document that was put together by HUD and some other private and public stakeholders at the request of President Clinton way back in 1995. Isn’t it amazing how poor policies that seem so right at the time, to some, end up kicking us in the ass for decades. And as much as the government has gotten comfortable with the storyline suggesting banks are responsible for the entire mortgage bubble mess of the mid 2000’s, it was, in fact, all started by government agenda. Have a look at this little gem which I am suggesting is the document that led us to the economic devastation from which we are yet to crawl out.
For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership.
This post was published at Zero Hedge on 12/19/2014.
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