Here we present the results of the Jan. 5 ASI E-News survey, which asks readers to point the finger at who or what caused the housing collapse.
Here we present the
results of the Jan. 5 ASI E-News survey.
Ben
Bernanke blames the collapse of the housing market on lax regulation, not the
failure of the Fed's monetary policy. Since regulation also falls under the
Fed's purview, this may be a moot point, but which do you think was the main
cause?
Regulation failure: 55%
Monetary policy failure:
28.3%
Other: 16.7%
Comments:
“The
Fed, by keeping interest rates low, created the housing bubble. Also, forcing
banks to loan to those who were not qualified was part of the problem.”
“I think it was lax regulation, lax monetary policy, and greedy
people - from homebuyers all the way up to the top of banking/investing firms.”
“You can't allow people with no money, no job, no income, and no
assets to buy a home with no money down, interest only payments, and credit
card-type terms. You are basically saying, `Here, have a free house.’ When
houses become free, they sell fast (the price doesn't matter) and the market
becomes flooded with these free houses (in all price ranges). Eventually, the
loans - after having been sold or traded - go into default, for obvious
reasons. If you are still wondering why the value of your home is down, look no
further than Barney Frank and Chris Dodd, who enabled Fannie and Freddie to
create this mess.”
“Every administration for the last 30 years has continued to
relax banking regulations. That is the problem.”
“Falsification of loan documents, greed and stupidity are
largely to blame.”
E-News Poll Results 1/5/10 (1/7/10)
January 7, 2010