Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Us - Simple Fix To Debate Over Government’S Role In Housing

Recommended Posts

http://dealbook.nytimes.com/2013/11/06/simple-fix-to-debate-over-governments-role-in-housing/?ref=business&_r=0

So let’s turn to mortgage market change. Congress is debating what to do about Fannie Mae and Freddie Mac, the government-owned mortgage insurance companies that collapsed during the 2008 financial crisis.

Worried that the government backs too many new mortgages, the Washington consensus has coalesced around a solution that looks a lot like Obamacare. The leading proposals involve getting rid of the Frannies to have private companies create mortgage-backed securities. The government’s role would be to insure some of those mortgage-backed securities, to subsidize the home purchases of the disadvantaged and to regulate mortgage-market players to prevent predatory practices and risk-taking that could lead to taxpayer bailouts. Senators Bob Corker, Republican of Tennessee, and Mark Warner, Democrat of Virginia, have a bill that embodies this harmony.

So what about alternative ideas? There are surprisingly few.

Some conservatives argue for the government to get out of the mortgage market completely. But what passes for the left’s position in Washington is not the opposite of the right’s. The liberal establishment concedes the argument that changes should bring investors back into the housing market and shrink government’s role. They spend their energies pushing to expand and protect housing affordability and access.

The govt is already heavily involved in the mortgage market as they have got the central bank rigging the interest rate market...

Share this post


Link to post
Share on other sites

They spend their energies pushing to expand and protect housing affordability and access

They do? This is news to me.

They have done this with the millions of new council houses they built over the last 10 years. <_<

Share this post


Link to post
Share on other sites
The leading proposals involve getting rid of the Frannies to have private companies create mortgage-backed securities. The government’s role would be to insure some of those mortgage-backed securities,

So the idea is to get the government out of the housing market by having them backstop privately issued securities? :lol::lol::lol:

Why don't they just wire cash directly into the bank accounts of the 1% and save everyone a lot of time instead of maintaining the fiction that there's this thing called 'risk' and that 'investors' get paid to take this risk.

Share this post


Link to post
Share on other sites

Why don't they just wire cash directly into the bank accounts of the 1% and save everyone a lot of time instead of maintaining the fiction that there's this thing called 'risk' and that 'investors' get paid to take this risk.

They already do - its called "QE"

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   206 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.