Govt Reinflating the Housing Bubble? TARP Inspector Says Yes

Calculated Risk Blog: TARP Inspector Says Govt Risks Reinflating the Bubble


To the extent that the crisis was fueled by a “bubble” in the housing market, the Federal Government’s concerted efforts to support home prices risk re-inflating that bubble in light of the Government’s effective takeover of the housing market through purchases and guarantees, either direct or implicit, of nearly all of the residential mortgage market.

From Office of the Special Inspector General for the Troubled Asset Relief Program: Quarterly Report to Congress, January 30, 2010

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