Is government fighting the burst of the housing bubble by doing more of same things that caused it?

Question

what does this say for the country say in about 3 to 5 years taking into considerations all of the other straws piling up on the camel's back?

Answer 1

Instead of allowing the free market to regulate itself, Congress helped create the problem by forcing banks to lower their standards so so-called 'underpriveleged' could buy houses they couldn't afford, and this practice of lowered standards soon was applied across the board. Lenders and real estate brokers are both complicit in pushing people who don't know anything about the home-buying process into just plain bad product.

Now, Congress and the president, unfortunately, want to mess with the free market again. Instead of letting the losers lose and let the shake-out take place, which will cause some suffering in the short term, they are going to create a much bigger problem down the road. There's the law of unintended consequences and, as its name implies, no one knows yet just what problems freezing rates will cause, but it will.

Answer 2

You can add this to the list of things that this administration has helped bring about in destroying the American economy. You can also blame many of the voters or the politicians who helped to influence the vote on many issues such as Proposition 13 which in my opinion actually started the ball rolling in the first place. Remember that vote way back when people had 3cent stamps and 25cents gasoline along with houses that were selling for 10,20,or 30 thousand dollars with a reasonable property tax. Then, a lightbulb lit up in someone's head and they saw dollar signs in the millions and billions and now here we are..........

Answer 3

Catch 22 is all they have..do nothing... depression....do something...buy time to avert depression..what will be the ultimate solution ? Who knows ? If there is a new economic law to help U.S. and the world to recover I hope they find it soon, if not I will volunteer at the neighborhood soup kitchen and watch many folks cry (lament) about a good economy we use to have...