Implications being acknowledged

Carpe Diem reports on a U.S. House of Representatives Committee on Oversight and Government Reform report to the point that Global Financial Crisis, Mortgage Tsunami, Housing Bubble Can All Be Traced to Federal Government Intervention to Create Affordable Housing.

The gist of it is that the federal efforts to make housing affordable created incentives that created business structures that bypassed normal safeguards. That was a primary factor resulting in the excessive inflation in the housing market and the unsupportable mortgage phenomenon.

This is a case of the ‘do good by government’ ethos producing tragic results.

The real tragedy of the government’s affordable housing policy is the impact on average Americans, particularly those of modest means. Millions of these borrowers, who were supposed to have been helped by federal affordable housing policy, have now been forced into delinquency and foreclosure, destroying their asset base, their credit, and in some cases their families.

Actions have effects and sometimes they are not what is intended.

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