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People who are holding real estate exposure in the US are the primary beneficiaries. Then you add in redlining, and it starts to look systemtic. So the cure s
by thedudeabides5 6y ago
People who are holding real estate exposure in the US are the primary beneficiaries.
Then you add in redlining, and it starts to look systemtic.
So the cure should be appropriate to the disease, make home ownership practical, affordable, and (if you are into reparations) subsidized.
Or at least as subsidized as being a rich person is in the mortgage origination process (via that stealth socio-economic test that is your FICO score).
- mfcl 6y agoSubsidized home ownership? Don't tell Thomas Sowell that idea. How would that work? You make it easier for people to own, then the prices increase. Do you subsidize more? If so, then it's just 2008 again.
- maxerickson 6y agoIt can be done indirectly. Fund infrastructure that is needed for housing starts, do other things to remove obstacles to housing starts, etc.
- cm2187 6y agoLet’s set up a state guaranteed mortgage guarantor so the banks can relax their landing standards. And let’s call it Fannie Mae, or perhaps Freddie Mac...
- maxerickson 6y agoThose are more or less direct subsidies.
- emmelaich 6y agoProbably would not end well. https://www.scotusblog.com/case-files/cases/collins-v-mnuchin/ https://www.scotusblog.com/case-files/cases/collins-v-mnuchi...
- maxerickson 6y agoWhy are we talking about Fannie and Freddie? They are direct subsidies! I'm talking about building power lines and wastewater plants and shit like that. Encouraging counties to adopt zoning that simplifies residential construction. Etc.
- thedudeabides5 6y agoJust have Fannie and Freddie give preference to those loans in their purchasing decisions. You'd end up with weird MBS based on population performance as opposed to regional or time based, but at least then you can bid up the mortgages (and down the yields faced by consumers of color).
- Swizec 6y ago> (via that stealth socio-economic test that is your FICO score). Fun fact: First thing you learn from when moving to USA is to get a credit card immediately. Start working on that score. Even if you don't intend to stay, just in case you change your mind. My first credit card 5 years ago had a $1000 limit. And only if I kept my bank balance above $1000.