tag:blogger.com,1999:blog-1110014885778996459.post2291597149559638062..comments2024-03-28T08:45:53.564-07:00Comments on Idiosyncratic Whisk: Housing: Part 282 - Borrower characteristicsKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1110014885778996459.post-16413055265733458972018-02-06T21:36:44.293-07:002018-02-06T21:36:44.293-07:00It doesn't need them.
People usually focus on...It doesn't need them.<br /><br />People usually focus on the lower interest rate as a subsidy to buyers. I actually think that is insignificant - certainly dwarfed by income tax benefits.<br /><br />I think the value that does come from the GSEs is from the public guarantee that everyone complains about. It socializes systematic risk, which is useful and appropriate.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-80142539640281706042018-02-06T21:28:30.149-07:002018-02-06T21:28:30.149-07:00Good post!
Related question: why does the US need...Good post!<br /><br />Related question: why does the US need public agencies to guarantee private mortgages anyway?<br /><br />Is this a classic case of a subsidy for the middle class, ie people already rich enough to contemplate buying a hosue? Or something else?Matthiashttps://www.blogger.com/profile/13665641102508209349noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-47601702975300321232018-02-05T21:10:28.056-07:002018-02-05T21:10:28.056-07:00"If they were a market outcome, the outcry ab..."If they were a market outcome, the outcry about greedy bankers would be deafening. Since they are a political outcome, those profits get pocketed by lenders and the GSEs while activists and pundits nod in support of our wisdom and prudence."---KE<br /><br />Egads, and probably true too. <br /><br />Great blogging. <br /><br />It has been known for a while that the private-sector began to market aggressively the CMBS and RMBS, somewhat supplanting the public sector. Never seems to sink in though.<br /><br />Also, the commercial property markets had a parallel collapse alongside the residential market, globally too.<br /><br />The commercial property collapse strongly suggests an underlying common cause, that being, of course, way too-tight money. <br /><br />I wonder about the US economic system, and macroeconomic policies. Can inflation be held in check, without chronic wage suppression? Without bashing property markets? <br /><br />The Fed is again eyeing wage suppression to hold inflation in check. The actually want higher unemployment rates. <br /><br />Dow off 1,500 points in a couple of days. <br /><br />Lots to mull. <br /><br /><br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com