Posted tagged ‘Real estate bubble’

Government Intervention And It’s Consequences.

December 5, 2012

I found this video on EconomicPolicyJournal.com, it is by Nick Gogerty at gogerty.com. You will visually see the inflating of the housing bubble caused by Federal Reserve money printing. You will also see the bursting of the housing bubble, a bubble which would have never been created in the first place, if not for the Fed’s money pumping.

A toxic brew of, 1)  Government mandating lower lending standards, 2) the Federal Reserve printing the funding for these loans, and 3) the artificial lowering of interest rates because of this counterfeiting, created mortgages that could not possibly be paid back. Banks got bailed out by the Federal Reserve’s purchase of mortgage-backed securities through (more…)