Check the chart. And it's not rocket science to figure out that interest rates = low = people spending more than they should b/c they can afford the note.
do i approve? not really? best i can tell the stimulus wasnt targeted or implemented properly. i do agree with w's tarp policy, but not with his low cap gains and marginal tax rates. but the bigger issues were spending too much and leaving the fed interest rates low forever. the same is true now. cut spending. arguing over a 3-5% tax increase is misplaced.
It wasn't poor people getting loans for shotgun houses that broke the mortgage industry. It was speculators, both business and personal, getting loans for mansions beyond their means that did it. Republican de-regulators, republican lenders and republican borrowers were all over it.
