Las Vegas provides an excellent nutshell of what happened to housing in America as a result of the machinations of Barney Frank and his pals at Fannie Mae and Freddie Mac:
In 2000, the city was on a path of robust growth. But in 2003, the age of “the 80-20” dawned, a scheme that allowed buyers to sign on for 80 per cent mortgages and get the other 20 wherever they could — banks didn’t care where. It was effectively a 100 per cent mortgage with zero down.
That changed everything.
Suddenly it became a right, not a privilege, for anyone to buy a house, says Fahrny’s business partner Suzie Marquardt — “whether they could pay back the loan or not.”
By 2004, people in Vegas were standing in line for days to put their name on a list to make an offer on a new house.
“Investors were buying up new houses and builders didn’t care who bought them. They just couldn’t build them fast enough,” Fahrny recalls.
Bidding wars broke out, people were offering tens of thousands of dollars over list prices, and agents were bringing “flowers and candy” trying to get sellers to take their offers.
Locals were getting daily mass mail-outs from banks. Flyers coaxed customers to refinance, take money out of their homes and buy a car, go on vacation, buy another house.
When the bust came, starting in 2008 - a mere five years after Barney and his buddies had ignited the firestorm, panicked banks went into foreclosure overdrive, desperately trying to recoup some of their bad loans. Even the largest stooped to tactics such as faking titles to speed the foreclosure process along, and with understandable - if not necessarily good - reason:
“They basically had Excel spreadsheets of mortgages, and then started trading among themselves and there was no real record of where each mortgage went. So now we’re in this predicament. Who really owns what? We don’t really know.”
American anger was directed toward the banks, and while not entirely unjustified, it was certainly misplaced; the banks were merely following orders, and writing loans that prior to 2003 they would have declined. The anger, by rights, should have been largely directed at Democrats, who peddled the idea that, rather than being the American Dream, home ownership was a fundamental right.
It's surprising that so many fail to recognize that about Democrats: they're forever peddling non-existent "rights" even as they systematically seek to remove our liberty.