Americans once again are witnessing the strength of our economy in adjusting to errors — not to mention the eagerness of politicians to find ways to take credit for addressing “crises.”
Though it has not been a massive problem in this area, the “subprime mortgage crisis” did affect lending institutions and borrowers across the country. It was a lesson to both lenders and borrowers that more attention needed to be paid to the ability of those seeking mortgages to pay them off.
Government at the federal level and in some states reacted quickly to the “crisis” by establishing new programs to help those who had gotten in over their heads with risky mortgages.
Even as that was occurring, the housing and lending markets were making their own adjustments. According to the National Association of Realtors, home sales that have been sluggish are expected to recover later this year. Housing prices have decreased slightly, actually helping more Americans to buy homes. And lenders have become more realistic about giving money to those asking for mortgages.
In other words, the market is repairing itself — with little or no help from government. The situation is a reminder of the eagerness of politicians to use our tax dollar to address “crises” — even if the private sector is capable of healing its own wounds.