Jul 07 2008

Why did the housing meltdown happen NOW?

Category: economy,housing,Uncategorizedharmonicminer @ 4:03 pm

The usual suspicion, held by those of us who expect bad results from government meddling in the market, is that the housing/sub-prime meltdown is somehow a result of new factors entering the marketplace by government action. That is, the meltdown happened at this time, not 5 years ago, and the question in these matters is usually, why now? The main player with enough power to distort the market so as to create a fast moving set of bad circumstances is, you guessed it, the government. That is, why were all the sub-prime loans made recently, not ten years ago? In other words, what changed?

Steve Sailer details an important factor not considered by many, and not widely explained, or even mentioned, in the media:

Uncovering
the roots of the disastrous home mortgage bubble that popped last year
will keep economic historians busy for decades. Yet, one factor has so
far been largely overlooked: the bipartisan social engineering crusade
to drive up the rate of homeownership by handing out more mortgages to
minorities.

More than a negligible amount of the blame for the
mortgage meltdown can be traced back to multiculturalism:
government-mandated affirmative-action lending, demographic change,
illegal immigration, and the mind-numbing effects of political
correctness.

The chickens have finally come home to roost.


If you find this a provocative thesis, he has made a very convincing argument, that, like it or not, is worth a read.

One Response to “Why did the housing meltdown happen NOW?”

  1. harmonicminer » When there’s a financial crisis, look to the government as the cause says:

    […] Sowell is not the first person to make this observation, though his very prominent voice is a strong confirmation. […]

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