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Back to To the Point

To the Point

Will Expanding the Housing Market Lead to Another Bubble?

The housing market usually leads the way out of recession, but this time around it's a drag on economic recovery.  So President Obama is going to give it a boost , making it easier for first-time buyers with low credit ratings to qualify for mortgages on new homes.

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By Warren Olney • Jan 16, 2015 • 1 min read

The housing market usually leads the way out of recession, but this time around it's a drag on economic recovery. So President Obama is going to give it a boost, making it easier for first-time buyers with low credit ratings to qualify for mortgages on new homes.

Admittedly, it's a modest proposal — $900 in savings for just 250,000 people, when more than $2 million are needed for healthy growth. But critics call it a risky first step toward another sub-prime disaster -- just like the one that started the Great Recession a few years ago.

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    Warren Olney

    former KCRW broadcaster

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    Reporter, Fill-in Host

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    Producer, 'One year Later'

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    Sonya Geis

    Senior Managing Editor

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    Stephen Oliner

    American Enterprise Institute

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    Arizona Republic

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    Wall Street Journal

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