Thoughts on the Housing Bill

The Housing Bill has passed in the Senate with some Republicans grousing that it is an unfair bailout at the taxpayer’s expense.
Some highlights:
Increase the Federal Housing Administration’s role.
Establish a stronger regulator for the GSEs.
Permanently increase “conforming loan” limits.
Create home-buyer credit.
Bar down-payment assistance for FHA loans.
Create an affordable housing trust fund. Give grants to states [...]

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On Government Bailouts

Uncle Sam is stepping in to aid Fannie Mae and Freddie Mac. One might question the wisdom of government bailing out mortgage companies. In this case, I don’t. Fannie and Freddie are part of the solution, not part of the problem. By definition, they were not sub prime lenders. They just bore the brunt of problems [...]

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