A political challenger in the race for governor of New York makes the claim that Andrew Cuomo, former housing secretary in the Clinton administration, was directly responsible for the housing meltdown.
Now this is surely political mudslinging, but there is some truth in the matter. One of the few things we have not done as a nation is try to determine why we are in this long term housing decline. The political processes may bring out some answers for us.
Paladino said that as secretary for Housing and Urban Development, Cuomo “couldn’t wait to get in front of the cameras at press conferences” to say how he was encouraging the federally chartered mortgage giants Fannie Mae and Freddie Mac “to lower their standards so every American can enjoy having a house.”
“He did a terrible injustice to those poor Americans telling them they could have a house they couldn’t afford,” Paladino told reporters a day after he formally announced his campaign for governor. “He did a more egregious injustice to the taxpayers and the people who had homes as he created the sub-prime meltdown, which resulted in lower valuations.”
“He was initiator of a policy that was carried by others,” Paladino said, naming Clinton and Republican President George W. Bush. “It turned into a monster … all in the name of Andrew’s political career.” via Business Week
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