Economist Arnold Kling points out the absurdity of the US government’s residential housing entities:
Old consensus: we need Freddie and Fannie in order to make housing “affordable.”
New consensus: we need them in order to “prevent further house price declines,” in other words, to make housing less affordable.
A crazy world we Americans live in.
- A Consensus to Question by Arnold Kling
- Arnold Kling, on a roll by Tyler Cowen
- The Best Line on Fannie and Freddie You’ll Read All Day by Joe Weisenthal
- Can We Please Be Honest About Fannie and Freddie? They Now Exist to Make Houses More Expensive by Henry Blodget [a lengthier piece on how/why this plays out]