Affordable Housing?

If one reads the book Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon by Morgenson and Rosner you will find a common thread preached by politicos of “affordable housing”.

That much of what politicos did to set the stage for a bubble and consequential bust in housing was to expand home ownership from its historical level of 64.5% to 67.5% by arguing for, financing of, and lower requirements based on “affordable housing”. (1) (2)

Keeping the above in mind for a moment, consider this observation by Thomas Sowell:

'The same politicians who have been talking about “affordable housing” for years are now suddenly alarmed that home prices are falling. How can housing become more affordable unless prices fall?' (3)

Notes:

(1)    Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon by Morgenson and Rosner

http://www.amazon.com/Reckless-Endangerment-Outsized-Corruption-Armageddon/dp/0805091203/ref=sr_1_1?ie=UTF8&qid=1333828810&sr=8-1

(2)    Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis, John B. Taylor

http://www.amazon.com/Getting-Off-Track-Interventions-PUBLICATION/dp/0817949712/ref=sr_1_1?s=books&ie=UTF8&qid=1333829496&sr=1-1

(3)    Dismantling America: and other controversial essays, Thomas Sowell, page 24.

http://www.amazon.com/Dismantling-America-other-controversial-essays/dp/0465022510/ref=sr_1_1?s=books&ie=UTF8&qid=1333829598&sr=1-1