Tag Archives: moral hazard

Will The Federal Government Bail-out Irresponsible Home Owners

The Barack Obama administration is looking at ways to subsidize mortgage giants writing down mortgage principal. Republicans say this reduces moral hazard. Where are the incentives to be careful if your bad decisions are subsidized? The WSJ reports: Sen Bob … Continue reading

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Will The Federal Government Make A Good Landlord?

With hundreds of thousands of Americans defaulting on their mortgages, there’s been increased demand for rentals. So while home prices are going down for the past four years, rent is going up. Fannie Mae and Freddie Mac have thousands of … Continue reading

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Our Banking System Is Heavily Regulated

Economist writes: Is this the end of US capitalism? No, because we haven’t had pure capitalism for a long time. Our banking system is heavily regulated, but we have outdated rules for banks and we should be getting rid of … Continue reading

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India’s Mortgage Crisis

Here’s a report: Does the mortgage crisis demand a government bailout? A year ago, most experts thought not. Sad as the situation was for some homeowners, many experts felt the problem would be confined to those who had gambled on … Continue reading

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