Collapse of the Housing Market.

Collapse of the Housing Market. The purpose of self-governing is to make government work better by allowing people to help govern themselves. And the people do that by electing Representative to talk for them, to protect life, liberty and personal properties. “The absolute rights of individuals may be resolved into the right of personal security, the right of personal liberty, and the right to acquire and enjoy property… and that consists in being protected and governed by laws made, or assented to, by the representatives of the people, and conducive to the general welfare” (James Kent, Commentaries on American Law, Lecture XXIV). Yes I believe that the congress lived up to protect life, liberty and personal properties, because they used “…Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions…” (Community Reinvestment Act, October 12, 1977) They did this so everyone could get a house. They also wanted to get more people into house so the economy could move. Because of that the demand for houses increased and so did the prices and most people were not able to afford and could not get a loan form the bank. Because of that the government “…in 1995 gave the CRA serious teeth: regulators could now deny a bank with a low CRA rating approval to merge with another bank—at a time when the arrival of interstate banking made such approvals especially valuable—or even to open new branches. Complaints from community organizations would now count against a bank’s CRA rating.” (Lawrence H. White, “How Did We Get into This Financial Mess?,” Cato Institute, November 18, 2008). HUD also “actively pushed Fannie Mae and Freddie Mac into backing the enormous expansion of the nonprime mortgage market…. To fund their enormous growth, Fannie Mae and Freddie Mac