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Santorum: High Gas Prices Caused Housing Crash

Please early state GOP voters, don’t make me have to vote for this economic bozo in November.

Rick Santorum on Monday blamed the housing crisis on high gas prices.

During a campaign appearance in Michigan, Santorum said the housing bubble burst in 2008 because people could no longer afford to pay their mortgages because of high gas prices.

“We went into a recession in 2008 because of gasoline prices,” Santorum said in Michigan according to Buzzfeed. “The bubble burst in housing because people couldn’t pay their mortgages because of $4 a gallon gasoline.”

Santorum then said President Obama actually wants higher gas prices.

“He actually believes this is a good thing for America, I don’t,” the former Pennsylvania senator added. “We are not here to serve the Earth, but to be stewards of the Earth.”

The official government take on the collapse, authored by the Financial Crisis Inquiry Commission, blamed Wall Street banks for taking on excessive risk via subprime mortgages, and government regulators for failing to sniff out the start of the crisis before it threatened the global financial system.

I understand the politics of today, in which the current gas spike is something you want to grab onto now, but it needs to be done with some intelligence.

Gasoline prices more often than not effect a person’s disposable income.  That means that’s less money to buy the “wants” in life, not the “needs” in life like housing.  Chances are you’re more likely to not go out to dinner on the town or a movie if gas prices rise over not paying your mortgage.

If, you happened to have fallen into the category of which Sen. Santorum is talking about and paid for gas over you mortgage payment, chances are you probably should have never been given a mortgage in the first place.

Being at HUD at the time we were screaming at Congress to do something to help avoid the collapse — only to have Barney Frank block all attempts to reform — I tend to blame subprime mortgages for the housing market’s collapse.  That, and house-flipping shows on reality TV making it look “so easy,” liberal social policy to get everyone in a house even if they can’t afford one, no-money down payments, and a whole litany of things I probably could think of it I cared to go on.

Far, far, far down the list is gas prices.

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