The Washington Post, which relied on David Lereah, the chief economist of the National Association of Realtors and the author of Why the Housing Boom Will Not Bust and How You Can Profit from It, as its main source on the housing market during the bubble, has still not recognized the housing bubble, even as its collapse is throwing the economy into the worst downturn since the Great Depression.
An article on losses at Freddie Mac, which are causing it to need more bailout money, never noted its continuing practice of insuring mortgages on homes that are purchased at bubble-inflated prices. This will cause Freddie to continue to lose money in the foreseeable future as the default rate on these loans will be much higher than normal. Freddie would be able to avoid such losses if it issued mortgages based on appraisals of rental values (which were not affected by the bubble), however it has opted not to do so.
The Post should try to talk to some experts who are familiar with the dynamics of the housing market for its articles on the topic.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved