The U.S. government failed home owners but you probably will never see an inept media take the blame for repeating the bytes that populist politicians-in-power cited in promoting the fiasco.
The U. S. government saw to it that everyone who wanted one owned a home whether they could afford it or not.
Uncle Sam provided loan guarantees where tiny down payments were made. The U,S also set mortgage payments out to 30 years, and permitted interest-only loans.
We had to have U. S. Government-guaranteed Fannie Mae and Freddie Mac instruments to create a subprime problem and eventually all the excuses to bail out banks.
How come, our neighbor to the north, Canada, has had no problem and no deep housing recession? It has no concerted program for all of this mortgage aid. Canada does not go in for the liberal housing subsidies that the U.S. has to this date, and for which Congress has never taken responsibility.
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