Come on, Stanford? Harvard? Magna Cum Laude in Economics? This can't possibly be right.Originally Posted by Lyric
"The problem was that not only were these mortgages based on housing prices inflated by the Federal Reserve's low-interest rate policies, many of the home buyers had been granted mortgages under federal government pressures on lenders to lend to people who would not ordinarily qualify, whether because of low income, bad credit history or other factors likely to make them bigger credit risks.
This was not something that federal regulatory agencies permitted. It was something that federal regulatory agencies -- under pressure from politicians -- pressured and threatened lenders into doing in the name of "affordable housing."
The housing market collapse was set off when the Federal Reserve returned interest rates to more normal levels, but it was a financial house of cards that was due to collapse, sending shock waves through the economy. It was just a matter of when, not if."
--THOMAS SOWELL, PHD Economics, senior fellow of the Hoover Institution at Stanford University. He graduated from Harvard University in 1958, magna cum laude with a BA in Economics. He received his masters in Economics from Columbia University in 1959, and PHD in Economics from the University of Chicago. He has taught Economics at Howard University, Cornell University, Brandeis University, and UCLA.
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