Peter Wallison, a conservative voice in the world of fiscal policy, sees signs of another housing bubble. He points to the growing gap between owning versus renting, and to a return to no-money-down mortgages.
He recently wrote a much-commented-upon opinion piece in the New York Times entitled “The Bubble is Back.” But unlike his most of colleagues on the 2011 Fiscal Crisis Inquiry Commission, Wallison blames government housing policy for the last bubble.
The government-sponsored and government-bailed out entities Fannie Mae and Freddie Mac still dominate the housing market, buying up loans and selling them to investors — just like they did before the bubble burst in 2007.
Wallison joins Here & Now’s Meghna Chakrabarti to discuss the potential housing bubble.