The U.S. economy was purposely juiced by the administration to maintain a robust economy. When sports figures use steroids to boost their performance the common term is they are on ‘juice’ meaning steriods. Well, the U.S. economy has been on juice. The loose housing mortgage market juiced the U.S. econony.
Why would the current administration juice the U.S. economy. Certainly the only answer is that it was a tactic to maintain a strong economy. A rising housing market was thought to increase wealth and increase consumer spending. For several years, the finance and economy pundits on CNN, MSBN, and the major networks have said that the housing market has kept the economy from sinking. It’s clear that the housing market was let run wild with no mortgage lending regulation to stimulate the economy. Folks, what other logical reason is there?
It must have been a deliberate tactic to let the mortgage lending market run loose and wild with no meaningful oversight and regulatory actions. It hasn’t been very long since the U.S. experienced the last real estate meltdown due to loose mortgage lending practices. Anyone that is 50+ will remember the 1980’s real estate crisis when foreclosures hit unheard of highs. During the 1980’s the savings and loan industry made questionable loans to thousands of home buyers that were not qualified financially. The 1980’s real estate crisis was not that long ago and it just is not possible that the regulators, managers, bureaucrats and financial industry experts were not aware.
There had to be a conscious decision to let the mortgage lending market run free and wild. Keep in mind that billions in profits were made. Many investment firms, mortgage companies, home builders, title companies, lawyers and others made billions in profits. Consider another perspective. Why were interest only loans created and allowed in the last decade? Who can remember the radio and TV financial advisors recommending that buyers use interest only mortgages “if they were only going to own the house for one to two years”. All of the speculators planning to flip houses knew that “own the house for one to two years” was a euphemism for “flip the house”.
And then consider all of the special mortgages offers for no application fee, no closing fees, no PMI, etc. These are all red flags that the mortgage industry has been operating with no oversight. The important point though is that it wasn’t on accident, no folks, the purpose was to juice the economy by inflating housing prices and convincing Americans to over consume with the end goal to artificially inflate the economy.
My friends, you have a right to be outraged! You should be outraged! The situation that our country is in today was not an accident that couldn’t have been avoided. Are we so naive that we will believe that?
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