Today, I will introduce the Free Housing Market Enhancement Act, which removes government subsidies from the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board. . . . Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. — Ron Paul, 2003 [HT: Steven Landsburg] Read more →
EppsNet Archive: Freddie Mac
Playing Politics
Steven Landsburg on a public healthcare option: The [General Motors] takeover started with this promise from the President: GM will be run by a private board of directors and management team…They — and not the government — will call the shots and make the decisions about how to turn this company around. Within one month, powerful lawmakers had successfully “encouraged” General Motors to retool factories in their home states, and Senator Jay Rockefeller had prevented the closing of a dealership owned by one of his wealthy constituents. Or recall what happened with Fannie Mae and Freddie Mac, who succumbed to so many political pressure [sic] that–well, you already know the rest of that story. When you politicize an industry, be it cars, mortgage lending or health insurance, you invite interventions on behalf of the rich and powerful. The less rich and the less powerful foot the bill. Read more →
Thomas Jefferson on the Financial Meltdown
ALBANY, N.Y. (AP) — If anyone could emerge from the AIG bonus debacle looking good, it could be New York Attorney General Andrew Cuomo. — “NY’s Cuomo wins praise for pursuing AIG on bailout” Cuomo. KWOH-moh. Italian, I suppose. I have no personal animosity toward Mr. Cuomo, but despite his favorable write-ups in the press, he is certainly no hero in these matters. Americans have short memories. Even members of the press — or “the media,” as you now call them — who should provide context and perspective, have short memories. Set the Wayback Machine to 1995. Bill Clinton is president and Henry Cisneros, the Housing and Urban Development (HUD) secretary, institutes a requirement that 42 percent of the mortgages financed by government-sponsored entities (GSEs) Fannie Mae and Freddie Mac serve low- and moderate-income families. Things only got worse under Cisneros’ successor, Andrew Cuomo: Cuomo raised that number to 50… Read more →