Tuesday, March 11, 2014

In the News: Housing Policy and The Middle Class

Michael Milken, chairman of the Milken Institute, had an opinion piece in the Thursday, March 6, 2014 edition of The Wall Street Journal titled, "How Housing Policy Hurts the Middle Class." Milken says, "Policies made in Washington distorted the banking system and discouraged personal responsibility by subsidizing loans that borrowers couldn't otherwise afford....Ultimately, taxpayers got the bill."

The article contains statistics indicating that though aggressive housing programs were meant to make housing more affordable and create financial independence, the percentage of home owners in America hasn't changed much in the last three decades--it's still around 65%.

Milken believes that Housing's 2008 collapse, which led to the U.S. Treasury takeover of Fannie Mae's and Freddie Mac's obligations caused federal debt to surge, and that Americans will eventually have to pay for it.

You can read Milken's article at http://online.wsj.com/news/articles/SB10001424052702304610404579401613007521066 

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