Saturday, December 26, 2009

Front And Center

clipped from

The administration made its announcement on Christmas Eve night. Transparency, baby!

We knew all along that Fannie and Freddie are nothing but arms of the US government.

The conclusion:

The above actions would preserve and strengthen the government's involvement and control over the country's housing finance system and make it harder to reintroduce substantial private sector involvement later on. They would also continue distortions in the marketplace leading to who knows what unintended consequences. Finally these steps would do nothing to deleverage the housing finance system, a key step in returning it to any degree of normality.

The first commenter at the article made this disturbing observation:

I live in Beijing and am shocked to realize that the US housing system is now far more Socialist than China's.
Welcome to the New America, where the government is front and center in virtually every aspect of your life.