When David Stevens left his position in the Obama Administration in 2011 as the head of the Federal Housing Administration to go to head the Mortgage Bankers Association, the chief lobbyist for the industry he once regulated, I posted on the revolving door of corporatism, noting how common this sort of thing is. The interesting thing about this is that we now know subsequently what Stevens oversaw before leaving the regulators post for industry because a recent study shows that the FHA insured loans at huge risk in 2009 and 2010 during the height of the crisis. In essence, what were once industry risks became government risks via this stealth bailout via FHA loans, a bailout that continues today. The New York Times reports:
A new and extensive analysis of 2.4 million loans insured by th...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.