QUOTE AND NEWS
Clusterstock  Jan 27  Comment 
By Nate Raymond NEW YORK (Reuters) - Daniel Mudd, the last holdout among former top Fannie Mae and Freddie Mac executives accused of concealing risky mortgages that fueled the financial crisis, told a judge on Wednesday a U.S. regulator's...
Wall Street Journal  Dec 29  Comment 
The government is trying to get taxpayers off the hook for billions of dollars of potential losses if another mortgage crisis arrives and plans to ramp up sales of new securities that transfers potential losses to private investors.
Wall Street Journal  Dec 17  Comment 
Shares of Fannie and Freddie are in trouble thanks to a provision in Capitol Hill’s omnibus spending deal.
MarketWatch  Dec 16  Comment 
Shares of Fannie Mae and Freddie Mac both skidded 6% lower, as the spending bill agreed to in Congress would forbid the Treasury from a so-called "recap and release" that would send the mortgage buyers into private hands for at least two years....




 

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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