ORANGE COUNTY, CALIFORNIA
Posted by PrestoPundit on 09/18/2008
is ground zero for Congressionally mandated “liar loans” for minority home buyers. In fact, “liar loans” were invented in SoCal. So what has this “do good” legislation done for minority communities and minority home buyers in Orange County? Well, it’s wiped them out, with home values crashing buy nearly half and more since last year in minority dominant communities, like Santa Ana and Anaheim. Homes are being foreclosed on at record levels across the county, personal credit ratings are being destroyed, and whole neighborhoods have been devastated. It’s an old and tragic story — what happens when government attempts to “help” by destroying price signals and the normal functioning of the market.
So where are we today? Orange County has moved into 7th place on the list of the most risky places to make a home loan in the United States, trailing no. 1 Los Angeles and no. 2 Riverside / the Inland Empire. 1,427 OC homes were seized in August, a new record. It’s a mess, and the handprints of Congress and the Federal Research are all over it.
BONUS: From the City Journal, Winter, 2000: “The Trillion Dollar Bank Shake Down that Bodes Ill for Cities.”