Tag Archives: government intervention

The New Obama Plan To Refinance Mortgages

President Obama Thursday night announced a plan to expand access to mortgage refinance. Why would government intervention be needed here? Because the private sector has no incentive to refinance mortgages on homes that have negative equity. So we get more … Continue reading

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What Can Be Done To Boost Housing Market?

One popular suggestion is to make refinancing easier. How? The free market has a limited appetite for more home refinances because so many homes are underwater and bank standards for lending are so high. Libertarians and conservatives want less government … Continue reading

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What Would A Free Market Fix Look Like For Housing Market?

This op/ed in today’s Los Angeles Times runs down all of the major ways the federal government has intervened in the housing market over the past four years. Each of these interventions has only made the situation worse. So this … Continue reading

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Why Is The Housing Market Called Weak?

When oil prices are low, is the oil market called weak? Demand is currently weak for American housing. This is no more inherently bad news for the economy than high housing prices. Either way, some people will get hurt and … Continue reading

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Is There A Social Benefit To Rising Home Prices?

I don’t get it. When home prices were going way up in value, those on the left were complaining about the lack of affordable housing and said the problem demanded government intervention. Over the past four years, home prices have … Continue reading

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When Will The Fed Sell Off Mortgage-Backed Securities?

To prop up the housing market, the Federal Reserve has bought $1.25 trillion worth of mortgage-backed securities over the past year. The housing market has stabilized. Now there’s a call for the Fed to start selling off these securities and … Continue reading

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Housing Market, Economy Appear Frail

Housing figures bounce up and down, but overall the past six months, the housing market has appeared steady. That’s largely because of massive government intervention to prop up home prices and reduce foreclosures. The Washington Post says: But pending home … Continue reading

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Homebuyer Tax Credit Wide Open To Fraud

Gee, that’s a surprise. Another government program open to fraud? Who would’ve thought it? Many of the claimants for the tax credit are thought to be illegal aliens. Many seeking the tax credit are under the age of 18. Those … Continue reading

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Who Is To Blame For The Mortgage Meltdown

Howard Marks is chairman of Oaktree Capital Management. He writes in the New York Times that everybody is to blame. He writes that we put too much trust in the free market. That we did not adequately regulate derivatives, which … Continue reading

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Obama’s Making Home Affordable Program

There’s only so much that government intervention can accomplish if people don’t have the income to support monthly mortgage payments. Home values have fallen so dramatically that fewer homeowners than expected can be helped by Obama’s program. Lenders are swamped … Continue reading

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