by Justin Spittler
Casey Research
It’s happening again…
The government is blowing another subprime bubble.
Longtime Casey readers know the U.S. government caused the housing bubble of 2007–08.
In short, easy money policies caused housing prices to spike 46% in six years. Convinced that housing prices “never go down,” lenders began issuing mortgages to folks who couldn’t afford them. Many of these “subprime” borrowers defaulted on their loans. The housing bubble popped, causing a financial crisis.