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:
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As usual, a lot of things that look good during an economic upturn, look bad when the economy turns down.