Even though the Bush Administration said it would not nationalize banks at the height of the financial crisis, the government has stumbled into owning much of the national mortgage market. That's the finding of a ProPublica investigation. And it has implications for fragile real estate markets like Las Vegas.
This whole idea that the government must provide mortgage funding or it will not exist, or that it must set interest rates or no one will know what to charge or what to pay, or even that government must provide money or commerce will not occur is totally ridiculous. Any economist worth their salt will tell one that all of these things existed long before government meddling in the market. And, importantly, before government, all of these things were much more efficient and much "fairer". Then, foolish projects were not financed, people unfit to have a loan were not financed, and no banks were bailed out. Indeed, history teaches valuable lessons!Tom Hurst –Dec 19, 2012 11:33:35 AM