Glenn Beck posted this on his site, but I think every American needs to see it.
This graph represents the history of housing values since 1890.
Source: GlennBeck.com
As you can see, there are a couple of smaller jumps in values since 1970 before the big rise begins in 1997. Those jumps correspond with legislative interference in the housing market. Specifically, 1977 was the year the Community Reinvestment Act was passed.
For those unfamiliar with the Act, it provided the foundation of the government’s programs to help everyone who wanted a house to be able to buy one. It eventually led to the practices where people who would not normally be able to afford to purchase a house were extended credit by the banks, and these notes were guaranteed by Freddie Mac and Fannie Mae. It is this practice which led to the housing market crash we are seeing today.
So, in summary, the government’s policies and interference in the housing market directly contributed to the market downturn we are currently in. Yet, we still largely believe the same people who cause this problem in the first place are the ones who will get us out.
Don’t believe them. We have not hit bottom yet.
Watch Glenn explain the graph here.
