QUOTE AND NEWS
Financial Times  Nov 25  Comment 
US president-elect has the motivation to engineer IPOs of the mortgage companies
Financial Times  Nov 24  Comment 
Groups may need fresh cash if proposed Republican corporate tax cuts are enforced
New York Times  Nov 14  Comment 
The mortgage giants’ government conservatorship irks investors, who assert the arrangement deprives them of dividends.
MarketWatch  Nov 10  Comment 
Shareholders of Fannie Mae and Freddie Mac have fought the 2012 arrangement that sweeps profits to Treasury; they may see their bet pay off under President Trump




 

I suppose a priapicnl reduction program would be better than nothing, but there is always the risk of unintended consequences or even operational failure when attempting such a specific intervention. Why not let monetary policy do the work in a continuous, predictable, and agnostic fashion? It would deliver benefits not only to home owners, but also by reducing the real return on the many large cash-equivalent investments amassed by corporations like Apple ($60B last I checked), spurring them to put funds to more productive use. And of course, monetary policy can benefit from the Chuck Norris effect. Fiscal policy hasn't exactly inspired such reactions of late.

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