Mark Weisbrot wrote an article recently about how free enterprise will keep us in a deep recession ("Can free enterprise be the key to boost the economy?" July 7). He states that it was not the government that got us into this mess with real estate. It was precisely the government that put us in this housing crisis.19 comments on this story
How about government agencies such as Housing and Urban Development and the Federal Housing Administration forcing banks to give housing loans to people that had no ability to pay them back? Inevitably, the loans failed and hundreds of thousands foreclosures began. Left on their own, the banks would have never made these loans and the housing market would not have crashed.
He also mentions the abnormally high unemployment for the past five years. Under an administration that intervenes in the economy on every level, be it Obamacare, stimulus packages, IRS harassment, tax increases, prevention of energy exploration (coal, oil, nuclear), etc., the unemployment rate will continue to be abnormally high.