Obama and many of the decisions that were made by individuals with strategic management backgrounds like the owners of facebook, google & twitter and prior to his election as President of the United States along with the sub-prime crash at and about 7/2007 that created a business environment regarding real estate which was highly anticipative regarding profits.
The decisions of the upper echelons with in the financial community changed the status quo and strategic management perspectives.
Also the financial bail out of certain lending institutions and insurance companies that President Barack Obama supported were equivalent to Bush’s ideas about administrative taxing policies in regard to influencing the market place. The untold story is real estate brokers similar in kind such as re/max and century 21 should have also qualified for bail outs along with the sub-prime companies and banks. Also not providing bail out money to investors especially individuals with retirement portfolios is tantamount to age discrimination. Forcing them to be dependent on their social security is forcing them back into the work place which is hostile to seniors.
I am astonished and baffled by the lack of thought and dialogue among government officials, economist, Obama and the media about the sub prime debacle until after the financial crisis. I think that if they had influenced appropriate dialogue, it would have caused the American Consumer to begin divesting in regards to their investment portfolios, and there would have been more political support to provide bailout money to investors. Also there would have been support to grant a grace period for consumers with bad credit.
The sub-prime problem is and still continues to exasperate the real estate housing problem. Self-employed consumers are unable to purchase the American Dream as it relate to housing in large numbers. My hypotheses and theses about the lending debacle and housing crisis is that both are related to the fiscal, and monetary policy Federal Reserve, Congress, and the White House.
The rate cuts directly influenced the increased demand for residential housing in such a manner that caused dysfunctional housing markets through out our country. Even though a significant proportion were investors who also exasperated the problem as a consequence of propelling the sellers market by influencing market value of real estate housing through flipping. Those investors during the peak of the discussed time period contributed to the increasing market value in most cases and in many instances it was as a consequence of flipping real estate as soon as it was transferred.
The apparent objective of current policy making is to create barriers to prevent investors from buying real estate. The targeted population is the self-employed and even if they have all of their tax documents, I will argue that it is still extremely difficult to persuade any underwriter to be in accord with an applicant that is self-employed because of the expectation of her or him being an investor.
Just think about this for a moment the fiscal and enacted policies of government were of the magnitude that they put the political economy in disequilibrium. My hypothesis is that the sub-prime crash was the biggest market indicator that forcasted the financial crisis along with causing the election of the first African American President, Barack Obama. I don't accept the theory that the means are justified by the end result.