by Michael Tennant, The New American:

In the first several years of the 21st century, federal policies encouraging banks to grant mortgages to borrowers who couldn’t repay them, government purchases of mortgage-backed securities, and other housing-market interventions led to skyrocketing housing prices and record consumer debt, precipitating the 2008 crash.

Yet the Biden administration, having learned nothing from this fiasco, has enacted similar policies that are virtually certain to result in similar outcomes, reports the Daily Caller.

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the same government-sponsored corporations that played a major role in the 2008 crash, are behind much of the current mischief in the housing market. Under May 2023 guidance from their regulator, the Federal Home Financing Administration (FHFA), these entities have been using low-risk borrowers to subsidize high-risk ones.