A primer of how the government failed home owners that you probably will never see in an inept media that repeat the bytes that populist politicians-in-power cite.
The U. S. government went out of its way to:
One: See that everyone owned a home whether they could afford it or not.
Two: Give tax exemptions on home ownership interest and taxes as a further inducement.
Three: Provide loan guarantees where tiny down payments were made.
Four: Set mortgage payments out to 30 years, or permit interest-only loans.
We had to have U. S. Government-guaranteed Fannie Mae and Freddie Mac instruments to create this eventual 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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