New Obama Housing Loan Policy: The Definition of Insanity?


Housing bubble
Credit: Dreamstime

Albert Einstein reportedly once defined insanity as doing the same thing over and over again and expecting different results. From a front page article, "Wider Access to Loans Sought," in this morning's Washington Post:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery….

Say what?

For more background on how easy money housing loan policies promoted by the Federal government helped cause the Great Recession see Veronique de Rugy's, "The Truth About Fannie and Freddie's Role in the Housing Crisis," and Sheldon Richman's, "Clinton's Legacy: The Financial and Housing meltdown."