Wondering What Caused the Housing Market Collapse?

On the radio last night I heard excerpts from a speech Bush gave in 2002 that made my jaw drop.  It’s interesting how things have worked out and how unreported this story really is.  Machiavelli had nothing on Bush.

. . . I believe owning something is a part of the American Dream, as well. I believe when somebody owns their own home, they’re realizing the American Dream . . . The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it.

We are here in Washington, D.C. to address problems. So I’ve set this goal for the country. We want 5.5 million more homeowners by 2010 — million more minority homeowners by 2010. (Applause.) Five-and-a-half million families by 2010 will own a home. That is our goal. It is a realistic goal. But it’s going to mean we’re going to have to work hard to achieve the goal, all of us.

. . . And so what are the barriers that we can deal with here in Washington? Well, probably the single barrier to first-time homeownership is high down payments. People take a look at the down payment, they say that’s too high, I’m not buying. They may have the desire to buy, but they don’t have the wherewithal to handle the down payment . . . I’m proud to report that Fannie Mae has heard the call and, as I understand, it’s about $440 billion over a period of time. They’ve used their influence to create that much capital available for the type of home buyer we’re talking about here.

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7 Comments on “Wondering What Caused the Housing Market Collapse?”

  1. justbybelief Says:

    It’s interesting that our elected officials have no idea what the role of Government is as specified by our founding documents, the Constitution and Bill of Rights. No where in these documents does it specify that it is the role of Government to make sure ethnic groups other than anglos are home owners. This shouldn’t even be a part of his agenda or his speech. Abolishing the Federal Reserve is actually one of Bush’s responsibilities which he will not perform. Bush is nothing other than a messenger and member of the plutocracy

  2. Sean Gerety Says:

    Hi Justby, good points. I will say things are so bad, and for the reasons you mentioned, that most people would simply not — and will not — believe it. I wouldn’t have if it wasn’t for men like John Robbins (see Freedom and Capitalism) and his former boss, Ron Paul. Also, something most folks don’t realize, Robbins wrote the majority of Paul’s book, The Case For Gold.

    FWIW I always shied away from the Fed issue because it was so completely inundated by conspiracy theory whack-jobs (which, btw, is Satanic brilliance). However, you don’t need a theory, even a wacky one, to see how utterly immoral and corrupt our system is and why the FED must go (along with the entire fractional banking system). I guess part of the problem is that guys like me, who even work in politics, grew up in it. I would imagine that if you were born in a sewer you wouldn’t smell the . . . .

    OTOH I can see perfectly why the current system is positive boon for those in power. The incentive there is so strong that I can’t see any hope in it ever changing, at least until the Lord returns. Also, from that same speech, Bush said something equally revealing and unnerving:

    And that’s going to mean making sure our homeland is secure, and I appreciate the progress we’re making on setting up a Department of Homeland Security. I know it’s going to be hard for some in Congress to give up a little power here and there, but I think it’s going to happen because people realize we’re here to serve the American people, not here to serve a political party or turf in the United States Congress.

  3. Lauren Says:

    Every fascist dreams of a secure nation with a strong state-controlled economy. It isn’t going to happen because it can’t happen. Prices can’t allocate proper supply of resources when they are controlled. But Bush can’t permit a price-driven economy because that–hold your ears–wouldn’t be fair.

  4. brhm Says:

    Mr Gerety:

    I enjoy your blog very much. I was struck by your above comment re: conspiracy theories. Do any of Drs Clark’s or Robbins’s writings address this issue (perhaps Freedom and Capitalism)? Having read some of the CT corpus, I would very much like to read a Scriptural assessment.

    Thanks . . . George

  5. Sean Gerety Says:

    Hi George. Off hand I can’t think where either Dr. Robbins or Clark addressed conspiracy theories. One of the obvious problems is that they’re built upon any number of fallacies.

  6. brandon Says:


    Robbins addresses conspiracies in Freedom and Capitalism, the chapter “The Political Thought of the Founding Fathers”. He shows that the actions of the founding fathers were motivated by their belief in a conspiracy against them.

  7. qeqesha Says:

    Cde¨ Sean Gerety,
    With the recent announcement on the multi billion dollar ¨bailout¨ plan for the irresponsibility of financial institutions you have the good makings of a USSR(NA) — the United Socialist States of the Republic of North America and its dear leader, Cde George Bush! Cde Bush might as well hug Castro and smoke those Cuban cigars — if he hasn´t been doing so already!!(American Presidents are not allowed to smoke Cuban cigars!)
    Those of us in the developing world who continue to endure wacky bleeding heart and stupid head socialist policies and fiscal irresponsibility can only wonder how people who have been privileged to live in a country like the USA with all its freedoms can let a government get away with such a scandal Cde Bush should answer some hard questions! Besides, we in the vulnerable developing world feel the effect of this scandal much more than the prosperous countries like the USA, where it was brewed!


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