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The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008
House Committee on Oversight and Government Reform
House Committee on Oversight and Government Reform
Abstract
The Committee on Oversight and Reform investigated the housing bubble and its subsequent financial crisis of 2007 which was attributed in part to federal government intervention in the housing market, particularly through entities like Fannie Mae and Freddie Mac. This intervention privatized profits but socialized risks, leading to reckless behavior and exposing taxpayers to significant losses. Policies promoting "affordable" lending encouraged risky practices, ultimately resulting in devastation for the economy. Despite initial success in raising homeownership rates, government intervention created a mortgage crisis with far-reaching consequences, highlighting the dangers of manipulating market outcomes through government initiatives.
Date
2010-05-12
Document Type
House Minority Staff Report
Serial Number
Document Length
28 pages
Congress
111
Relation
DOI
Keywords
Staff Reports
PAP Major Code
14: Community Development and Housing Issues
PAP Minor Code
1400: General
Related Hearings
Press Releases and Contextual Information
https://web.archive.org/web/20230614163849/https://oversight.house.gov/report/the-role-of-government-affordable-housing-policy-in-creating-the-global-financial-crisis-of-2008/