Bernanke and The Housing Bubble

When the Obama nominated Federal Reserve Chairman urges for more government intervention in the housing market in order to promote home buying/selling, that should throw up a massive red flag unless you are completely and utterly incapable of basic economic foreshadowing. This week, Ben proposed just that idea. Wanna know the real down and dirty reason that we had a housing bubble? The federal government began, under the Clinton Administration, intervening in the private market to make it easier to get a home loan. Intervention in this case caused people who wouldn't normally be able to acquire a home loan to be able to qualify and receive one. So when the home prices fell, those people lost their equity and were forced to foreclose. The companies and banks that held their mortgage also suffered massive losses and bankruptcies essentially creating our current recession. Obviously this is a very narrow and quick overview but it covers the essentials. All of this can be avoided simply IF THE GOVERNMENT DOES NOT INTERFERE WITH THE PRIVATE MARKET. I just blew a bunch of liberals minds. Economics people, its not that hard.