Excellent little video on how too big to fail and mandated lending caused the bubble crisis

Center for Freedom & Prosperity in DC has put out a great little video on how federal politicians laid the groundwork for the financial crisis that has rocked the US economy.

Their mandates that banks meet certain "goals" for lending and their ability to package such loans and sell them to government-guaranteed 'Freddiemac' and 'Fanniemae' led to a vast housing bubble, the bursting of which has wreaked huge economic damage and distress.

Because so many homeowners owe more than their properties are worth more housing has been built than people can afford, and they are incentivized to walk away from these homes rather than stay and try make payments.

Nicole Kurokawa is an articulate, compelling and attractive lecturer.

She puts her case succinctly and well:

http://www.youtube.com/watch?v=_SdtoKeFTi0

This plug was not unsolicited.

We know no one at the Center, but came across the video and thought it was well done and wanted to pass on the link.

If their other work is of the same standard they perform a real public service.

Other videos from CF&P are advertised at:

http://www.freedomandprosperity.org/videos/videos.shtml

TOLLROADSnews 2010-01-11