Four Principles to End Housing Bailouts and Eliminate Fannie Mae and Freddie Mac
The white paper from the American Enterprise Institute for Public Policy Research describes how the housing finance market can function better without government support.
Palm Coast, FL – February 1, 2011 – American Enterprise Institute for Public Policy Research scholars Peter J. Wallison, Alex J. Pollock, and Edward Pinto present a new AEI white paper outlining four principles for reform of US housing policy, the protection of taxpayers, and the prevention of future financial crises caused by housing policy. The white paper describes how the housing finance market can function better without government support, how Congress can balance sustainable programs for assisting low-income families with taxpayer protection, and how the government-sponsored enterprises can be eliminated over time without disrupting the housing market.
The White Paper’s four central principles are:
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The housing finance market – like other WS Industries and housing finance systems in most other developed countries – can and should principally function without any direct government financial support.
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To the extent that regulation is necessary, it should be focused on ensuring mortgage credit quality.
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All programs for assisting low-income families to become homeowners should be on-budget and should limit risks to both homeowners and taxpayers.
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Fannie Mae and Freddie Mac should be eliminated as government-sponsored enterprises (GSEs) over time.
WATCH THIS: <VIDEO>
Four Principles …
<i>… housing finance market can function better without government support.</i>
As does everything else. Get government out of our lives, step back and watch the economy explode.
watch the economy explode
DARN!!! That Evelyn sure has a great idea. Maybe the government can deregulate loans again….and then the banks can offer low rate mortgages (with 20% down of course) that they will package and sell to other financial institutions until, of course, those august financial institutions realize that the value of the mortgaged properties are less than accurate, then they can claim the sky is falling, foreclose on those honest investors who put their 20% down, cry for another government bailout (like the one given in 2007), keep the collateral properties guaranteeing the bank initiated failed loans until property prices start to rise again and maybe try to repeat the process all over again. Great Idea!! no more government regulation. Ahem, also no more middle class.