Posted by Jeff Solsby at 12:00 am on Oct 16, 2009 Comments Off on ABCs of the GSEs and the Myth of “Affordable Homeownership”
Two maxims about Congress: the correlation between high levels
of confusing information and low levels of public interest; and if
ever there were an embodiment of the law of unintended
consequences, it would be many of the "great ideas" enacted by
Congress.
Such is the issue of Government Sponsored Enterprises (Fannie
Mae and Freddie Mac, Ginnie Mae, and others) and the noble cause of
government promoted "affordable home ownership."
Given the issue’s complexity, general public opinion might not
reflect reality when it comes to causation of the mortgage meltdown
over the last two years. Many in the public think it was
greedy bankers and unscrupulous lenders…and to be sure there’s
enough blame for all. But some in Congress would like you to
think they bear no part of the burden of blame.
The risk to those concerned about policy matters is that
Congress often does its worst under the veil of complexity, more
than content to leave you believing someone else is the
villian.
Fortunately, Peter Wallison, a senior fellow at the American
Enterprise Institute, today sets out in clear terms,… Read More