Why can't the govt. just stay out of the housing market?

Hey Gaby. Tell us what you really think. The answer to your question is money. As in enough money from development interests stuck in the pockets of Senators and Representatives until they went out and shed tears at press conferences and (a) lamented that every one is entitled to a home of their own and (b) by golly they were going to change all the rules for a mortgage to make that happen. Then realtors, brokers and loan officers got loans going for anyone that wanted a home regardless of any ability to make even the first monthly payment let alone 30 years worth. I heard they also gave loans to drunks pulled in off the street and a few dogs. Can that be possible?. Anyway, Fannie threw perfume water on the loans and the banks then sold all those mortgages to the big banks who then stuck them in boxes called cdos. Then insuring agencies insured them by wrapping those boxes in pretty ribbons and the rating agencies pronounced them pretty darned good stuff by sticking on pretty bows. Then all kinds of folks, foreign and local type, invested pension funds and what not in all them cdos. Somewhere along the line, like rotten fish, the stink from the cdo boxes got stronger than the Fannie Mae perfume. Then panic set in and the government ran in and said "these here banks are just too darned BIG to fail." So they gave the big banks a bunch of your tax money and called it good. OK they called it TARP. . Since then, we have 13 million empty homes but those banks have paid back all their TARP money they got from you.. Guess how they did it? Them there banks what was too darn BIG to fail, paid back the money from you with loans from you out of the SMALL Business Loan Fund. And Justice slept through it all. Yup. She's a great country.

Because the government positions are a revolving door between the financial sectors of Wall Street. Wall Street controls the housing market.

Here is a summary of how DC and Wall Street got us all into this mess.

by Michael Rivero of What Really Happened

The American media has been remiss (intentionally) in reporting on the mortgage-backed securities fraud, even though it is the initiating event in the economic disaster which continues to engulf the world. But while the government can pretend none of this ever happened, the civil suits will drag the scandal into the public eye, and well it should!

Because the O wants us to be a socialist state, that is why the high deficit, Government Motors and now Government housing.

In other words, he wants the government to run as much as possible and control what it doesn't run.

DK