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The Housing Boom and Bust

by Thomas Sowell

In the spirit of bipartisanship, my newest book— "The Housing Boom and Bust"— shows how both Democrats and Republicans ruined both the housing markets and the financial markets.

Like so many disasters, the current economic crisis grew out of policies based on good intentions and mushy thinking.

For far too long, too many people have regarded home ownership as "a good thing." It is certainly true that home ownership has its benefits. But, like ever ...

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Posted by: Shirley deLong
Comment: #1
Sun May 3, 2009 10:44 AM

Before politicians got involved with HUD, Freddie, and Fannie, intimidating the banks to loan money to people who literally couldn't afford to make payments for a home, folks had to prove they could afford the 'American Dream' before banks would even talk to you. Politicians then decided a 'First time Home Buyers' program, with nothing down and sellers could pay the closing costs because everyone was 'entitled to a home', regardless of whether they could pay or not, was more than a common disaster! Its' a Taxpayers' nightmare. These same politicians forgot to, once again, think about the consequences since Nafta and Cafta played a huge roll in the stabililty of Americans and their futures! President Obama has asked for ideas to tighten governments' belts! Taxpayers, the few that have jobs left, would like to bring several critical issues to the table that would be a beginning to paying off trillions of dollars, borrowed without Taxpayers' consent, and put America back on track by 2035, if put into place immediately! Government should start running like a business; that is, President, Vice-President, Secretary, Treasurer and a few good people that work, rather than sitting around occupying a seat and burning up dollars America doesn't have! Its' obvious, some of these greedy politicians have too much time on their hands and this is why the country has gotten in such dire need of change! Layoffs and job cuts have to be done! Its' time to cut politicians salaries and retirements to $12,000.00 yearly! Or better yet, take all politicians assets, pay off all the trillions they've borrowed and sell them a one-way ticket to the foreign countries they've sold America to! At no time have Taxpayers heard the words "we, the politicians that's driven America into bankruptcy, will cut our salaries and retirements!" What an insult to the small business owners, working and struggling to make ends meet while politicians continue towards the bankrupting of America! In the business world, salaries, benefits and jobs are being cut; therefore, its' time for cuts and layoffs in all phases of government, beginning with 'our public servants', that to date, have been servicing themselves and not for Americas' benefits! It doesn't take a rocket scientist to figure why politicians created Nafta and Cafta, taking Americans' jobs and stability, thus causing a huge breakdown in society! Without textile and furniture manufacturing jobs, how would anyone be able to afford housing, furniture, clothes, autos, or anything else. Therefore, instead of government bailouts, handouts, Freddie, Fannie, HUD, AIG, Banks, Automakers, or any company in bed with government and politicians, these 'endless money pit programs' should be cut completely out, as so many of these 'politically motivated useless departments' have never worked! It's real chaos for America! 1977 started the downhill trend of spending, by all politicians, for social and welfare programs, and it has now put America in jeopardy! All these programs, including non-profit organizations, should be stopped immediately! Beginning with the cutting of aforementioned critical issues, 'Fair Tax', to include property taxes, should follow, as everyone that wants to be a responsible and constructive American must pay their fair share of taxes, and stop making it the burden of the cash-straped homeowner thats' barely getting by, since government intervention! Until government and politicians change their 'tax and spend' bad habits, step up to the plate and take responsibility for the bad debts created by you, 'politicians are not solving the problem' - 'they are the problem!'

Posted by: Speaker4
Comment: #2
Wed May 27, 2009 6:52 AM

Mr. Williams, I will take you up on your challenge to come up with one thing banks can do without regulation; I believe they can chain down their pens to their desks without governmental regulation. Perhaps it isn't to long before this administration decides to regulate pens. Afterall, the pen is mightier than the sword. Thank you to Mr. Sowell and yourself for brandishing your blades so deftly.

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