{"id":1699,"date":"2014-01-14T11:48:46","date_gmt":"2014-01-14T18:48:46","guid":{"rendered":"http:\/\/www.clarkjudge.org\/?p=1699"},"modified":"2016-10-13T07:31:25","modified_gmt":"2016-10-13T14:31:25","slug":"nightmare-on-elm-street-a-picture-of-the-new-housing-bubble-ricochet-com-01-06-14","status":"publish","type":"post","link":"https:\/\/www.clarkjudge.org\/wordpress\/2014\/01\/14\/nightmare-on-elm-street-a-picture-of-the-new-housing-bubble-ricochet-com-01-06-14\/","title":{"rendered":"Nightmare on Elm Street: A Picture of The New Housing Bubble | Ricochet.com | 01.06.14"},"content":{"rendered":"<p>No one has written as deeply and well on the financial crisis as Peter Wallison, once White House Counsel for President Reagan and now a senior fellow at the American Enterprise Institute. His core analysis: Beginning in the late 1990s, Fannie Mae and Freddie Mac \u2014 driven by the Clinton Administration and Congressional policy (read: Barney Frank and Chris Dodd) \u2014 pumped up a massive housing bubble that, when it burst, drove us into the financial crisis. In today&#8217;s\u00a0<i>New York Times<\/i>, he has\u00a0<a href=\"http:\/\/www.nytimes.com\/2014\/01\/06\/opinion\/the-bubble-is-back.html?_r=0\" target=\"_blank\">an op-ed<\/a>, the title of which says it all: &#8220;The Bubble is Back.&#8221;<\/p>\n<p>Down payments are again shrinking toward zero. Maturities are climbing toward the stars. Citing AEI&#8217;s National Mortgage Risk Index, Wallison reports that this past October, &#8220;about half those getting mortgages to buy homes \u2014 not to refinance \u2014 put 5 percent or less down.&#8221; So housing prices are again breaking away from their historic lockstep with the trend in rents and heading for the bubblesphere.<\/p>\n<p>All this easy money has barely altered the level of American home ownership, which hovers around its historical place of 64% or so. Critics of tighter standards, Wallison concludes, &#8220;claim that people will not be able to buy homes. What they really mean is that they will not be able to buy expensive homes.&#8221;<\/p>\n<p>Here is a chart that\u00a0<i>The Times<\/i>\u00a0did not include in the article, but that Wallison sent to his email list this evening. \u00a0If looking at it doesn&#8217;t give you the willies, nothing will. Yes, the bubble is back:<\/p>\n<div>\n<div>\n<div>\n<div><a title=\"image001\" href=\"http:\/\/cdn1.ricochet.com\/var\/ezwebin_site\/storage\/images\/media\/images\/image00124\/5066834-1-eng-US\/image001_lightbox.png\" rel=\"lightbox\"><img loading=\"lazy\" decoding=\"async\" title=\"image001\" src=\"http:\/\/cdn1.ricochet.com\/var\/ezwebin_site\/storage\/images\/media\/images\/image00124\/5066834-1-eng-US\/image001_large.png\" alt=\"image001\" width=\"360\" height=\"238\" \/><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>No one has written as deeply and well on the financial crisis as Peter Wallison, once White House Counsel for President Reagan and now a senior fellow at the American Enterprise Institute. His core analysis: Beginning in the late 1990s, Fannie Mae and Freddie Mac \u2014 driven by the Clinton Administration and Congressional policy (read: [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[33],"tags":[200,199,87,151],"class_list":["post-1699","post","type-post","status-publish","format-standard","hentry","category-economic-policy-the-great-financial-crisis","tag-crisis","tag-housing","tag-ricochet","tag-ricochet-com"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/posts\/1699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/comments?post=1699"}],"version-history":[{"count":3,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/posts\/1699\/revisions"}],"predecessor-version":[{"id":1921,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/posts\/1699\/revisions\/1921"}],"wp:attachment":[{"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/media?parent=1699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/categories?post=1699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.clarkjudge.org\/wordpress\/wp-json\/wp\/v2\/tags?post=1699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}