? asked in Politics & GovernmentPolitics · 1 decade ago

Why did the government create agencies to help poor Americans borrow huge amounts for housing and education?

Freddie Mac, Fannie Mae, FHA, Sallie Mae...think about it...each of these agencies interfered with the private markets and made possible for incredible artificial increases in tuition costs and housing costs. The private market of course increases prices to the extent it knows that individual market participants can afford to borrow more (courtesy of the federal government) to pay for things like housing and education. Look at the year after year double digit increases in housing and education costs prior to 2007. Now that Fannie and Freddie are not providing access to loand for poor borrowers..suddenly home prices are declining by double digits year over year.

The same is true of healthcare. A government option will not contain healthcare price increases--just look at the failure of medicaid and medicare to contain costs.

Wake up people--especially people on the left. Government interference in the private market makes everything more expensive for all of us--not the other way around!

Update:

Also you will note how much the World Bank is hated by the citizens of countries that have had the misfortune to borrow vast sums from that institution. The citizens are the ones that get taxed to pay that wasted money back. Much of the money gets siphoned off by government cronies to line their own pockets at the expense of the people.

Update 2:

Yeah Michael K...good point..gee the economy is doing so well!!! The American Dream is not, I think, a U6 unemployment rate of 17.5%!

9 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    There are informed and uninformed. There are educated and uneducated. There are rich and poor.

    Guess which combination of those will be standing in line for handouts.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    Just think where the economy would have been had these agencies not made it possible to own a home and lending beyond peoples ability to repay.

    Republicans, Democrats, Independents, Libertarians people from every political segment of the American political spectrum uses the resources and benefits afforded by these agencies to achieve their American Dream.

    People spending beyond their means and greed by financial institutions, wall street, and oil companies brought this economy to it's knees.

    • Login to reply the answers
  • 1 decade ago

    I have to agree with shovel ready, this is how the Dems buy votes. And these people who become dependent on the government have no clue the future consequences.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    This is called socialism. That is where all reasonable responsibility is bypassed in order to provide people a life that they have not earned. There is no financal base for it, it leads directly to the sub prime loan fiasco that nearly took us down... And it may yet. Socialistic programs are the devil in any country.... It leads to death of a people and nation.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    Democrats have pushed these measures to purchase votes and increase dependence on the government permanently.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    the government should not be in the real estate, banking, or insurance business. just look at the governments history at it.

    • Login to reply the answers
  • vwvw40
    Lv 5
    1 decade ago

    So they would stay poor and dependant on the Govt.!

    • Login to reply the answers
  • ?
    Lv 6
    1 decade ago

    you can thank pres. clinton and the dems for bringing that mentality ... and then Bush for letting it continue

    • Login to reply the answers
  • true, i agree with you 100%

    • Login to reply the answers
Still have questions? Get your answers by asking now.