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Subsidized 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 sub
by mfcl 6y ago
Subsidized 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).