How did we get here? How could there be so many people going into default on home loans? The obvious answer is money was lent to people who couldn’t pay it back. But why? Here is a pretty fair look at how that came about, though Fox News deserves credit for not putting a laugh track over Chris Dodd’s clip.
The reason none of us own houses is because we couldn’t afford them. Seems stupid in hindsight now that Obama is calling for all those people to get government negotiated new mortgages they can afford. Who says stupidity isn’t rewarded? Unfortunately that will artificially inflate the housing market (again), kicking the ball down the road for someone else to deal with. But it sounds good, will get votes and will make people feel good, which seems to be what some people want in a President. Man, we hope we’re dead when all these bills come due.