Wednesday, June 10, 2009

They Did Have Good Intentions

Another video from a lecture series called "The Culture that Spawned the Crisis: A Closer Look" held at The National Constitution Center in May 2009. The speaker is Peter Wallison, who worked in government during the Reagan Administration.

He argues that a push under the Clinton and Bush administration's to increase the homeownership rate was a worthy goal, but it was done by distorting the credit market by pressuring banks and the two Government Sponsored Entities to make loans that they should not have made. This is not the first time that someone has made this point, but it does bear repeating.

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