“If government doesn’t steer capital into housing, the capital doesn’t disappear; it could fund other job-creating businesses.”
Advertised as a way to stabilize the housing market, government-backed mortgage securitization ended up distorting and destabilizing it. The resulting misallocation of resources – evident not only in today’s massive bailout of Fannie and Freddie but also in the vast quantities of land, water and energy wasted on suburban sprawl from Las Vegas to Fort Lauderdale – is a true American tragedy. Today’s housing crisis is an opportunity to make sure nothing like it ever happens again.
Damn straight. This is the Post, so the solution proposed is still WelfareLite, but any movement away from Rotarian Socialism is a move in the right direction.5 comments