Wednesday, September 17, 2008
Obsession With Diversity Ruined Housing Market
By John W. Lillpop
With Freddie Mac and Fannie Mae lying in ruins and private establishments like Lehman Brothers and AIG reduced to no better than welfare queens living on the public trough, an irrefutable truth must be accepted.
Although it may seem harsh, the irrefutable truth is that not everyone can afford the American Dream.
In much the same way as that sleek new Lamorghini is not quite within my financial means, so it is that some Americans do not make enough money, nor have enough cash saved, to purchase a home.
Others have less than perfect credit, too much debt, or lack satisfactory employment history and stability.
More harsh news, especially to those who believe in the socialist pap spread by liberals: Nowhere in the Declaration of Independence, the Constitution, or the Bill of Rights, is the U.S. government obligated to provide anyone with a 3 bedroom, 2 bath home with 1,700 square feet and an attached garage.
Home ownership is not a Constitutional right!
Unfortunately, the United States government has taken a greater interest in promoting home ownership for everyone than assuring that mortgages granted to qualified borrowers are sound and secure.
Once again, "progressive" foolishness has backfired and made things worse for the minorities it was supposed to lift up, and for the greater population.
Relaxed underwriting standards have made home ownership available to people whom would not have qualified in the past. However, the obvious question is "at what cost?"
By artificially stimulating housing demand by flooding the market with unqualified buyers, government bureaucracies upset the supply-demand balance; thereby leading to the unsustainable housing bubble that has finally burst.
Bottom Line: Just how have minority homeowners, especially those now going through foreclosure, benefited from America's insane obsession with diversity?
Posted by John W Lillpop at 4:39 PM