A NEW article by Sheldon Richman
The key to understanding the saga of Fannie Mae and Freddie Mac — the newly
nationalized twin government-sponsored enterprises (GSEs) that dominate home
financing — is this: They were created — intentionally — to distort the
housing and mortgage markets. That is, government planners were not content to
let voluntary exchange and spontaneous market forces configure those industries
unmolested. So — holding the taxpayers hostage — they intervened. Make no
mistake: the collapse of Fannie and Freddie is government social engineering predictably
gone bad. More . . .
A NEW article by Sheldon Richman