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"But yet, many on this board were saying a few months ago that Bushs policy is what drive housing prices up and thus made it impossible for new homeowners to buy a house. So which is it? You cant have both"
Jim - You need to read and understand the post before you respond. Housing prices are indeed driven "up" by easing credit standards....a simple function of the market that even a layman should understand. Fannie/Freddie and the entire secondary market are major factors in todays crisis. Purchase of risky mortgages by these institutions and investment banks is the reason were all in this mess today...and their policies have been driven by big money, hedge funds, unregulated investment firms....who until now have been making a killing....and who has been the champion of this hand off approach? I'll let you figure that out. Regarding your NY comment...yes..."lower income" neighborhoods are the hardest hit because of their inability to qualify by traditional morthgage standards. The fact that foreclosures are now striking hard at middle class America shows the extent of this problem. I won't even comment on your "veiled" racist comments.
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