Tag: Fannie Mae
Government Responds to Economic Woes by Making More Bad Mortgage Loans

Since the summer of 2008, the U.S. Treasury and the Fed have initiated a welter of new spending, lending, and subsidizing programs ostensibly aimed at stemming the recession that began early in that year and deepened quickly in its last quarter and in the first quarter of 2009. Among the most notable of these…
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Housing America

If you got to the Blog page by passing through the Independent Institute’s home page, I hope you noticed the announcement of the publication of Housing America: Building Out of a Crisis, which I co-edited with Benjamin Powell.  Ben and I have been working on this project for years, so it is nice to…
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Bernanke’s Reappointment

President Obama announced that he will reappoint Ben Bernanke as Chairman of the Board of Governors of the Federal Reserve Bank (Fed), and I’m more than OK with the president’s decision.  Bernanke’s policies over the past year and a half have put the Fed in a precarious position, but Bernanke says he has an…
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Mommas, Don’t Let Your Babies Grow Up to Report on the Government’s Financial Reforms

If you do, they will almost certainly disgrace your family by writing reports that can be interpreted in only two ways: (1) the reporter is a shill for the government, passing off government propaganda as news and analysis; and (2) the reporter is dreadfully incompetent and naïve with regard to government policies. Sad to…
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Hummel, Henderson, the Fed, and the Housing Bubble

My old friends Jeffrey Rogers Hummel and David R. Henderson continue to argue that the Fed had little or nothing to do with fueling the housing bubble during the first five or six years of the present decade. Their latest article along these lines appears in Forbes. This is the third rendition of their…
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Regime Uncertainty Exemplified in the Fannie/Freddie Debacle

The February issue of Vanity Fair has an interesting article on the politicking associated with the Fannie/Freddie debacle. Toward the end of the story (p. 146), the author, Bethany McLean, describes a late-stage episode in this tale that nicely exemplifies the concept of regime uncertainty. I proposed the idea of regime uncertainty in a 1997 article…
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Fannie Mae’s First Chief Credit Officer Blames Government for Sub-Prime Meltdown

In an insightful interview, Fannie Mae’s first Chief Credit Officer, Edward Pinto, corroborates our Research Fellow Stan Liebowitz‘s Independent Policy Report, Anatomy of a Train Wreck: Causes of the Mortgage Meltdown. Interviewed by Chip Hanlon, President of Delta Global Advisors, Pinto discusses how the affordable housing/lending lobby chipped away at lending standards until there…
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CBO Report: U.S. Will Go to Hell in 2009

According to a report just released by the Congressional Budget Office (CBO), “the [federal budget] deficit this year will total $1.2 trillion, or 8.3 percent of GDP.” This seems about right for a banana republic. The bad news is that neither commercial banana cultivation nor a republican form of government has proved viable in this…
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Wall Street Journal Corroborates Independent Institute Study of Causes of Sub-Prime Meltdown

After many months of the “mainstream” media refusing to discuss the real causes of the sub-prime financial crisis, the deafening silence has finally been broken in a January 5th front-page article in the Wall Street Journal (WSJ) that begins to unmask the truth. In “Housing Push for Hispanics Spawns Wave of Foreclosures,” Susan Schmidt…
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Credit Is Flowing, Sky Is Not Falling, Don’t Panic

In democratic societies, every great surge of the government’s size, scope, and power rests on a foundation of fear, and the present occasion is no exception. The president, the secretary of the treasury, congressional leaders, and the vultures now swarming Washington to pick the remaining flesh from the taxpayers’ bones would have us believe that unless the…
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