When the career politicians signed off on all of those free trade agreements they understood that all of those high paying manufacturing jobs they talk about were now going overseas!
In an effort to mitigate this they “encouraged” the quasi private/government Fannie Mae and Freddie Mac to begin to loan money to folks at rates and down payments that were unheard of. No surprise then that this created the housing bubble that in turn would help to create the great recession of 2008. The bankers would take the PR hit for all of this but were rewarded by our POLS with tax payer funded bonuses! Not only should the bankers not have been rewarded but they should not have been bailed out either!
However, Washington would then move to “encourage” another quasi private/government agency the Federal Reserve to create quantitative easing which would once again drive the housing market. This would require the FED to borrow 4 trillion bucks. These irresponsible actions are killing the capitalist horse!
When the housing market crashes again it will be a very long time in coming back to where it was. For example in the Stock Market crash of 1929 it would take until 1956 for stock prices to come back to 1929 levels!