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Ron Paul: Who Is Responsible For The Housing Bubble?

ronpaul.com — Many in Washington fail to realize it was government intervention that brought on the current economic malaise in the first place. The Federal Reserve ’s artificially low interest rates created the loose, easy credit that ignited a voracious appetite in the banks for borrowers. People made these lending and buying decisions based on...

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  • kemp34, on 05/13/2008, -0/+1One of the biggest roots of the bubble was activity by government-sponsored agencies Fannie Mae and Freddie Mac creating unnatural credit in the housing market and overly inflating the prices of properties beyond the reasonable levels supported by rational leverage and median wages. The false boom was created by false credit brought on by government activity, no question.
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