2009 June 24 post from voodoo
After the blood-bath of overly lax lending standards that led to the housing bubble and subsequent bust, we seemed to be making headway in identifying the problem (giving credit to those unworthy) and addressing the issue across the industry. Fannie and Freddie have even made progress by restricting what condos could be federally guaranteed with loans. Simple rules like a condo must not be in a building or community with more than 30% vacancy (for sale) were put into place to discourage and prevent borrowers from throwing money at real estate that will almost certainly lose value and be upside down in short order.
Then enters Barney Frank, one of the key idiots who helped orchestrate the current fiasco. Frank and colleague Anthony Weiner are asking Fannie and Freddie to RELAX their standards once again to more easily accomodate stupid consumers that want to super-size their lifestyles.
http://www.reuters.com/article/GCA-Housing/idUSTRE55L3912009062 2
We haven't remotely cleansed the system of the last bubble and there are those hard at work on the bubble pumps inflating away to get us quickly to the next bubble!
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