NY Fed info suggests our “government” is blowing a new housing bubble. Retweet
Take a look at this chart from the New York Federal Reserve…
The red line is subprime mortgages insured by the Voluntary Sector (market actors), while the blue line is subprime mortgages insured by taxpayer funds. Here’s the lesson it teaches…
The Voluntary Sector learned from the subprime crisis. The Political Sector did not.
This should make you angry. The politicians constantly…
- Enact policies that cause calamities
- Blame those calamities on the free market
- Use their self-created crises as an excuse to grab more power
- Turn that increased power into the next crisis
One example was the recent housing bubble. It’s very clear that BOTH the Democrats and Republicans promoted policies that increased the number of high-risk borrowers, thereby inflating housing prices. The Fed contributed to this problem with artificially low interest rates. This created a bubble that was bound to collapse. And, as usual, the politicians…
- Blamed the crisis on the free market
- Used the mess they created to grab more power
- Used that increased power to sow the seeds of the next disaster
This is happening right now. Even the New York Federal Reserve acknowledges the problem. See the sample letter below for the details. We’re using our No Subsidies campaign to send this letter. The hardwired message to Congress for that campaign reads…
End all subsidies.
You can copy or edit the following for your personal instructions to Congress…
I especially want you to phase out all forms of federal mortgage insurance. This kind of subsidy is causing a new subprime housing bubble. And you don’t have to take my word for it. This information comes from the New York Fed — http://nyfed.org/2amQj7R
Bottomline: The Voluntary Sector learned it’s lesson from the subprime crisis. Insurers stopped covering subprime mortgages. But the Political Sector wasn’t as smart. My tax dollars are now pledged to bailout banks with defaulting subprime mortgages. This insurance is actually a subsidy that encourages lenders to make subprime loans. That, in turn, does three terrible things…
1. It increases the number of risky loans2. It raises the price of housing above what it would otherwise be
3. This increases the cost of living
All three things point to another housing bubble, another bust, another financial crisis, more bailouts, and yet another power grab by the Political Class. ENOUGH!
I deny consent to all of this. End the subsidies and insurance programs. Stop blowing financial bubbles. DO IT NOW!
–END OF SAMPLE LETTER–
- Send your letter to Congress using our Educate the Powerful System.
- Share this message with friends who may agree or value the facts it contains.
- Please consider making a contribution or starting a monthly pledge to support our work.
Thank you for being an ACTIVE DC Downsizer,
Jim Babka & Perry Willis
Downsize DC