On one level, it’s almost unbelievable that anyone would ask this less than five years after the housing-bubble crash and the near-wipeout of Western financial institutions. On another, it’s almost inevitable, given the efforts by the governing class and the media to ignore the central failure in that bubble, which was incentivizing increasingly risky loans with government cash and coercion, which created a false-equity trajectory that nearly ruined us. If that core cancer gets overlooked, it simply keeps coming back:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

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