The level of government interference and taxpayer exposure in the housing market has always been a huge problem.
Higher education and mortgages have been key weapons of social engineering. The creation of massive amounts of debt and the entanglement of the government and taxpayers in mortgages was a major cause of the last economic meltdown.
The solution here is at best incomplete, but it’s a reasonable next step. Especially when dealing with 2020 Democrats who would love nothing more than to create another trillion dollar catastrophe by bribing their voters like crazy.
The Trump administration on Thursday released its first formal plan to overhaul the housing finance system and begin the process of removing Fannie Mae and Freddie Mac from government conservatorship, where they have been for the past 11 years.
The plan would also allow the firms, which back more than half of the nation’s home mortgages, to keep more of their earnings.
The objectives of the administration’s plan, according to Treasury officials, are to create a limited role for the federal government in the housing finance system, enhance taxpayer protections, and increase the role of private sector competition. Accomplishing all of this will take legislative and administrative action.
I’m somewhat skeptical.
Housing policy and the government have been entangled for a good century. And it always comes down to the sun and rain cycle of intervention, privatization, crashes and bailouts.