Over the span of one generation the United States has experienced two spectacular failures in single family housing finance
- Federal policy interventions were instrumental in both, saddling taxpayers with two massive bailouts.
- These failures did not come about in spite of government interventions but because of them. The current bailout has hobbled our economy with historically high borrower leverage and inadequate capital backing for a debt market consisting of over $10 trillion in first and second mortgages.
- Housing markets in no other developed country have suffered a similar fate. One must ask why
Edward Pinto is a resident fellow at AEI