Funancials

The Funny Money Blog

Re-inflating The Housing Bubble: I Can’t Make This Stuff Up

Banking ·

Is the housing bubble behind us?

Yea, probably.

Is the housing bubble ahead of us?

Yea, probably. 

Are you having Déjà vu?

Yea, me too…

Re-inflating The Housing Bubble

I have read several books concerning the causes of the Financial Crisis and The Great Recession, but I’m not going to get into the nitty, gritty details right now. It’s almost the weekend and your attention span is waning.

There were several factors that played a role in creating the crisis, but I will only touch on the high points.

Here’s a timeline:

1. Through several Presidencies, the government pushes the importance of homeownership.

2. Administrators push banks to lend to low-income consumers with weaker credit.

3. Banks refuse.

4. Agencies insure the mortgages shifting liability from the bank to tax-payers.

5. Banks comply.

6. The risky borrowers default.

7. The government sues the banks for originating risky mortgages.

8. Banks tighten credit.

And NOW…

Obama Administration Pushes Banks To Make Home Loans to People With Weaker Credit

 

We’ve come full circle! I can’t wait to do it all over again.

I can’t make this stuff up…

A Blinkin

Hunter, aka A. Blinkin, is the blogger behind Funancials. His experience in banking, lending, payments and investments has earned him the title of "Personal Finance Guru." In addition to helping people with their finances, Hunter enjoys crunchy tacos, open mouth kisses from his 2 baby boys and writing in third person.

Was this article helpful?

Get Fresh Funancials Content

Enter your email address to get new articles and money tips delivered straight to your inbox.


(no spam, I promise.)

Important Disclosure

I'm a big believer in transparency. As such, you should know that I make money from this blog. Weird, I know. The way I make money is simple: I occasionally link to products and companies that I believe provide tremendous value. If you choose to sign up, I may receive a small payout. This payout comes at no additional cost to you and, trust me, it's small. I'm in no position to quit my day job. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

Reader Interactions

Trackbacks