The Genesis of the housing crisis

In a very long but very informative article in the Spring issue of National Affairs (successor to the vital periodical The Public Interest), history professor and author Vincent J. Cannato expertly dissects where government housing policies failed spectacularly and caused the meltdown of September, 2008.Cannato delves into the psychological reasons for home ownership in America and thoroughly examines how well meaning but very wrong headed policies led directly to the crisis.From his conclusion:No matter what the federal government does, the desire to own a home will continue to burn in most Americans' hearts. That desire is an inseparable piece of the larger American Dream, and it generally makes good practical, social, and economic sense. Nor is it reasonable to expect government to abandon completely its role in the housing-credit markets, which are essential to the nation's economic health. But it is time to start reminding ourselves that the dream must be tethered to...(Read Full Post)