{"id":14949,"date":"2011-08-17T18:46:51","date_gmt":"2011-08-18T01:46:51","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=14949"},"modified":"2011-08-17T18:46:59","modified_gmt":"2011-08-18T01:46:59","slug":"reforming-fanniemae-and-freddiemac-with-marx-rotarian-socialist-rent-seekers-of-the-world-unite-you-have-nothing-to-lose-but-your-brains","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14949\/reforming-fanniemae-and-freddiemac-with-marx-rotarian-socialist-rent-seekers-of-the-world-unite-you-have-nothing-to-lose-but-your-brains\/","title":{"rendered":"Reforming FannieMae and FreddieMac with Marx: Rotarian Socialist rent-seekers of the world unite! You have nothing to lose but your brains!"},"content":{"rendered":"

Totally cool. An actual newspaper article about America’s favorite welfare program, government subsidized mortgages — and in The Boston Globe<\/a>,<\/em> no less:<\/p>\n

Amid all the clamor about entitlement reform during the struggle to raise the debt ceiling, one enormous cost – and potential source of future savings – largely escaped scrutiny: the billions of dollars the United States spends to support the mortgage market. Even before the 2008 financial crisis, the government assumed the credit risk on most loans, which allowed banks to offer better rates, but ultimately left taxpayers footing the bill when the housing market collapsed: $138 billion and counting.<\/p>\n

During the crisis, the government became even more involved in the mortgage market by rescuing Fannie Mae and Freddie Mac and agreeing to backstop larger loans. This furnished enough liquidity to prop up the housing market and helped bring about the low mortgage rates of the last three years. But getting in has proved much easier than getting out. Today, the government backs 95 percent of new loans, leaving taxpayers more exposed than ever.<\/p>\n

That could finally be about to change. After next month, federal loan limits in expensive areas like Boston, New York, and Los Angeles are set to decline from $729,750 to $625,500. Had the lower limits applied last year, the government would have backed 50,000 fewer loans. But even this modest pullback may not happen. At the urging of homebuilders and realtors, lawmakers in both parties want to extend the higher limits, possibly for good. It’s an early skirmish in the larger battle over the government’s proper role in the mortgage market. And the issue isn’t just when to pull back, but whether to do so at all: Many Americans have come to regard cheap mortgages as an entitlement.<\/p><\/blockquote>\n

I am so ecstatic to see Fannie, Freddie, Ginnie and FHAVAUSDA properly identified as welfare programs<\/u><\/em><\/strong> — invented by rent-seeking Rotarian Socialists for the benefit of other rent-seeking Rotarian Socialists — that I’m finding it hard to kvetch.<\/p>\n

Well, maybe not too<\/em> hard. Look at this:<\/p>\n

Liberals tend to support government intervention as a means of subsidizing home ownership for the poor and Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Totally cool. An actual newspaper article about America’s favorite welfare program, government subsidized mortgages — and in The Boston Globe, no less: Amid all the clamor about entitlement reform during the struggle to raise the debt ceiling, one enormous cost – and potential source of future savings – largely escaped scrutiny: the billions of dollars […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[212,29,26,6,5],"tags":[],"class_list":{"0":"post-14949","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-flourishing","7":"category-group-therapy","8":"category-lending","9":"category-marketing","10":"category-real-estate","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":12058,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12058\/what-caused-the-housing-crisis-perverse-government-incentives\/","url_meta":{"origin":14949,"position":0},"title":"What caused the housing crisis? Perverse government incentives.","author":"Greg Swann","date":"May 26, 2010","format":false,"excerpt":"Form an academic paper by George Mason University Economics Professor Russell Roberts:Beginning in the mid-1990s, home prices in many American cities began a decade-long climb that proved to be an irresistible opportunity for investors. Along the way, a lot of people made a great deal of money. But by the\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5011,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5011\/peter-schiff-our-leaders-irrationally-promoted-home-buying-discouraged-savings-and-recklessly-encouraged-borrowing-and-lending-which-together-undermined-our-markets\/","url_meta":{"origin":14949,"position":1},"title":"Peter Schiff: “Our leaders irrationally promoted home-buying, discouraged savings, and recklessly encouraged borrowing and lending, which together undermined our markets”","author":"Greg Swann","date":"October 16, 2008","format":false,"excerpt":"Peter Schiff in the Washington Post:Amid the chaos of recent days, as the federal government has taken gargantuan steps to stabilize the financial markets, realigning the U.S. economic system in the process, comes a nearly universal consensus: This crisis resulted from government reluctance to regulate the unbridled greed of Wall\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11313,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11313\/who-could-foresee-that-global-warming-would-be-exposed-as-a-hoax\/","url_meta":{"origin":14949,"position":2},"title":"Who could foresee that “global warming” would be exposed as a hoax?","author":"Greg Swann","date":"February 14, 2010","format":false,"excerpt":"So quickly, I mean. It was an obvious hoax, at least to me. Environmentalism is the new poverty for Marxists, the new insurmountable crisis that can only be solved by universal slavery under a one-world government. If you didn't see through that pose, you must have slept through the twentieth\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14059,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14059\/if-government-doesnt-steer-capital-into-housing-the-capital-doesnt-disappear-it-could-fund-other-job-creating-businesses\/","url_meta":{"origin":14949,"position":3},"title":"“If government doesn’t steer capital into housing, the capital doesn’t disappear; it could fund other job-creating businesses.”","author":"Greg Swann","date":"February 7, 2011","format":false,"excerpt":"The Washington Post: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\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14075,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14075\/obamas-plan-for-fannie-and-freddie-its-fha-as-it-turns-out\/","url_meta":{"origin":14949,"position":4},"title":"Obama’s “plan” for Fannie and Freddie? It’s FHA, as it turns out.","author":"Greg Swann","date":"February 11, 2011","format":false,"excerpt":"That's not what they're actually saying. But the law of unintended consequences will win out in the end. From the Wall Street Journal:All of the administration's proposals envision a scaled-back role for the government. One includes a new government backstop of certain mortgages under a federal \"reinsurance\" model, while another\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6814,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6814\/youre-gonna-need-a-shovel\/","url_meta":{"origin":14949,"position":5},"title":"You’re Gonna Need a Shovel","author":"Sean Purcell","date":"February 4, 2009","format":false,"excerpt":"When I was young, my father taught me a very simple story: A man walks by a big room and sees that it's chest high in manure.\u00a0 \"Quick,\" he says \"someone get me a shovel.\u00a0 There must be one helluva horse in here somewhere!\" Now the message was always clear:\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=14949"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14949\/revisions"}],"predecessor-version":[{"id":14950,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14949\/revisions\/14950"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=14949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=14949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=14949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}