Did Government Cause the Housing Crisis?

I interviewed Russ Roberts of George Mason on this topic.  Listen here.  He makes a good argument that government was part of the problem, but acknowledges a role for good, old-fashioned private sector mistakes. 

Comments

[Sr Max Higgins]

Bank of America and Mr. Higgins missing $millions, it can happen to you my, fellows Americans

More info at: http://maxhiggins.com/blog/

[Anissa H.]

Yes the FHA government agency can be blamed for this housing crisis it is because there are several problems occur such as the FHA does not have enough resources to properly screen lenders. This could create something disastrous in the future. If the FHA can’t tell shady lenders from legitimate ones, we will end up fighting another round with predatory lenders and home foreclosures as a result. How can the FHA repair the mortgage crisis when they are obviously in need of reform? Housing markets, especially in places like California where home values are down, are going to need a huge payday loan, a stronger HUD enforcement, and more FHA appraisers who actually meet the requirements to get the housing crisis under control. I think the Obama administration should definitely use a part of the TARP funds to straighten this mess out. You can find out more about what’s going on in the housing market from this article on the payday loan money blog at PersonalMoneyStore.com.