The Housing Mess (Continued)
When will our politicians ever learn? The Congress is now threatening banks that are foreclosing on mortgages that aren’t being paid. It was the Congress that created these foreclosures when they forced banks to loan money to people who couldn’t pay.
They did this through the Community Reinvestment Act in 1977 (look it up so you understand how this played a major role in the current crisis) and by buying these loans via Fannie Mae and Freddie Mac (GSE’s with implied backing via the government).
Now, Barney Frank is threatening to force banks not to foreclose on bad loans, more of the government intervention that got us here in the first place.
