Sunday, August 8, 2010
Gretchen Morgenson has a good article in today's New York Times concerning housing policy. She discusses Fannie and Freddie and also the close relationship that developed between the GSEs and Country Wide, the company that generated so many mortgages that turned out to be bad. But, she also discusses the idea that federal policy toward housing needs to be re-examined. I concur. The tremendous subsidies and policies that promote housing need to be exmained critically. Otherwise, we will eventually end up again with rising debt levels and housing-financed spending. When the time occurs, I am sure that the attitude will again be, "This time is different."