Did the Government cause the current Housing/Mortgage Crisis?
Yes, I am, because it is a corruption of the facts. Like every administration since WWII, the Clinton administration supported increased opportunities for home ownership, doing so in the context of the particular circumstances that existed during its time. The Clinton administration faced the continuing legacy of the redlining era, the lingering effects of the housing crunch of the early 1990’s, and a relatively strict conventional financing regime with few practical alternatives that had pushed marginal buyers into predatory financing programs at rates 4-5 percentage points above the then prevailing conforming rates of around 7%. These were substantial obstacles standing in the way of economic progress for minority and other low and moderate income borrowers, a point that no one disputed. Dishonest reporters such as your historian-blogger friend take Clinton era encouragement that “the creativity and resources of the financial industry” be brought to bear in finding ways to qualify bo
