http://www.takimag.com/site/article/the_diversity_recession_or_how_affirmative_action_helped_cause_the_housing/
“Uncovering the roots of the disastrous home mortgage bubble that popped last year will keep economic historians busy for decades. Yet, one factor has so far been largely overlooked: the bipartisan social engineering crusade to drive up the rate of homeownership by handing out more mortgages to minorities.
More than a negligible amount of the blame for the mortgage meltdown can be traced back to multiculturalism: government-mandated affirmative-action lending, demographic change, illegal immigration, and the mind-numbing effects of political correctness.”
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However the market corrected itself in spite of all these laws and regulations and now we have lower home prices but of course the liberal media makes it worse than it was and now home prices being low is bad. But the liberal media is lying again hiding the true cause which I just posted above and instead blaming free market capitalism. I heard home sales are rising again so the market is working despite all the government interference. The liberal media exxagerated the problem otherwise home sales would not be rising. actually the job losses and coming recession are caused by skyrocketing oil and gasoline prices not any housing bubble.
Emphasis is on TOO. You needed to spend more time studying how real estate brokers, developers, speculators, mortgage brokers and mortgage banks worked synergistically to run this speculative bubble in which everyone who wanted to own a house was forced to participate willy-nilly.
It was a bubble even before Greenspan's 1.75% negative amortization liar loans.