Austrian School

The Future for the Mortgage GSEs

You're way to generous, they should be abolished. They've proved to be unstable and impossible to regulate.

Freddie Mac Raising Capital, Spooking Investors - Barron's

Maybe when this all blows over we can look back and laugh how aroogant and foolish we were to mix government and mortgages. The ammount of corruption that was wrought on our congress and the realize that making interest rates artificially low just makes prices artificially high, so the end consumer is no better off.

OFHEO's Part in the Housing Crisis

How much are the GSE's paying you for this piece? What makes you think they're better at pricing risk than the entire market? Its their intervention in markets that are largely to blame for the situation we're in now, why would more of the same poisen become a cure? Its only when the malinvestments of this era of credit excess have been liquidated that we can get back on track to a healthy state based on fundamentals. Holding onto bad loans only prolongs the death. The market isn't illiquid, the price just went down and nobody wants to admit they're insolvent. The GSEs have done what anyone with free risk insurance does, they loaded up on risk and now the stuff has hit the fan.