Posts Tagged ‘regulation’

Thomas Sowell in IBD: Don’t Blame Deregulation For Housing Mess

Saturday, May 23rd, 2009

Investor’s Business Daily:

After virtually every disaster created by Beltway politicians you can hear the sound of feet scurrying for cover, see fingers pointing in every direction away from Washington, and watch all sorts of scapegoats hauled up before congressional committees to be denounced on television for the disasters created by members of the committee who are lecturing them.

The word repeated endlessly in these political charades is “deregulation.” The idea is that it was a lack of government supervision which allowed “greed” in the private sector to lead the nation into crises that only our Beltway saviors can solve.

What utter rubbish this all is can be found by checking the record of how government regulators were precisely the ones who imposed lower mortgage lending standards.

It was members of Congress (of both parties) who pushed the regulators, the banks and the mortgage-buying giants Fannie Mae and Freddie Mac into accepting risky mortgages, in the name of “affordable housing” and more homeownership. Presidents of both parties also jumped on the bandwagon.

KC Business Journal: Permit purgatory: Economy, high prices make Johnson County home building hellish

Friday, March 6th, 2009

KC Business Journal:

When Jim Kostusik appeared at Overland Park City Hall to obtain a building permit for a single-family home recently, the employee on the other side of the counter looked at him with surprise, then peered at the ceiling.

“I said, ‘What’s going on?’” recalled Kostusik, who owns Redstone Homes Inc. in Overland Park. “He said: ‘I’m waiting for the confetti and balloons to start dropping. You’re the first (single-family) permit this month.’”

What made the event strange was that Kostusik got his permit on Jan. 29. In a more typical year, Overland Park would have issued dozens of single-family permits by that date, and Johnson County would have been on target for another market-leading year of several thousand housing starts. But this has not been a typical year for wealthy Johnson County or its largest city, Overland Park (population: 173,000).