“For homeowners stuck with expensive mortgages on houses they can’t sell, President Obama served up a $75 billion program — in addition to another $200 billion to Fannie Mae and Freddie Mac — Wednesday to ease their burden. The plan doubles the federal guarantee, to $400 billion, for mortgage giants Fannie and Freddie — which hold about 40 percent of the nation’s $12 trillion in mortgage debt — to encourage mortgage availability and make refinancing easier.” (Chicago Sun Times, Thursday)
More price distortion, the cause of the mess.
FEE Timely Classic
“Freedom of the Price” by Dwight R. Lee