Stephen Moore has written an article titled, “Why is Washington re-inflating the financial bubble?” This will no doubt increase loan originations, but just as surely, it will increase delinquency risks. which states that Washington has learnt nothing from the housing bubble of 2007-2008. The author points out that, in fact, it was not a “housing” bubble, but rather a credit bubble. Observers are worried that history is going to repeat itself since Fannie Mae and Freddie Mac offer 3% down payment loans, Janet Yellen offers zero-interest loans, and the Federal Housing Administration loans have become the "new sub-prime" loans. In addition to the loans on offer, another worrying factor is RealtyTrac's report that bank repossessions have risen to 66% YoY in Q3 2015.
Stephen Moore has written an article titled, “Why is Washington re-inflating the financial bubble?” which states that Washington has learnt nothing from the housing bubble of 2007-2008. The author points out that, in fact, it was not a “housing” bubble, but rather a credit bubble. Observers are worried that history is going to repeat itself since Fannie Mae and Freddie Mac offer 3% down payment loans, Janet Yellen offers zero-interest loans, and the Federal Housing Administration loans have become the "new sub-prime" loans. In addition to the loans on offer, another worrying factor is RealtyTrac's report that bank repossessions have risen to 66% YoY in Q3 2015.