I don’t know who this author of this story is or anything about his ideological leanings, but the headline alone should give anyone pause. Something is definitely wrong when people seriously recommend manipulating the market and giving a failing enterprise more money, loans, and time will fix everything.
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Tag: freddie mac
But Corporatism is doing just fine. Here is a chart of Fannie Mae and Freddie Mac after it was announced that they would essentially receive a “blank check” from the US taxpayer.
Here’s a story that’s not receiving a lot of coverage thus far, but really brings home what a mess the housing crisis really is. Supposedly, when you buy a home the bank lends you money up front and agrees to be paid back gradually, with interest. A simple, straightforward relationship. But as we all now …
Brad Delong on Cato Unbound claims that demand shifted to private mortgage lenders, so that Fannie and Freddie’s excessively risky loans weren’t the primary reason why the two lenders failed. I’m not sure if I buy this argument. First of all, F&F may have lost 10% of their market share, but the risky borrowers where …