Be sure to look carefully at the easy to read chart. From the article:

I am not fan of the Fed. I think it no longer deserves status as a private bank. In fact, it should be a public bank with massive penalties for failure to regulate. We can't have the Geithner/Greenspan mistake happening again. Easy money from the private MBS came after Fannie and Freddie guarantees wained due to, as House of Cards says, fraud and corruption.

So we know that the bubble would have fizzled without this private banking, private mbs attack from the Fed. And we know that many non libertarians, like Bernie Sanders and Dennis Kucinich, hate what the Fed is doing to the American people.

If we want a solid 30 year mortgage, going forward, with a solid down payment, it is unlikely that we would have any trouble with underwriting at all. The problem comes when the banks want to offer easy money, in a desperate means to rekindle the fervor of the housing bubble. The litmus test of politicians ought to be whether they are for easy money loans or not. We should vote out any politician, regardless of party, that wants easy money lending and securitization of same.

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