http://www.thefreemanonline.org/departments/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/ Ideas on Liberty Wed, 15 Feb 2012 04:40:14 +0000 hourly 1 http://wordpress.org/?v=3.3 http://www.thefreemanonline.org/departments/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/comment-page-1/#comment-28791 Government Unable to Revive Housing Market | The Freeman | Ideas On Liberty Fri, 02 Jul 2010 12:28:13 +0000 http://www.thefreemanonline.org/uncategorized/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/#comment-28791 [...] Timely Classic “Government Intervention Is Needed to Solve the Housing Crisis? It Just Ain’t So!” by Steven [...] [...] Timely Classic “Government Intervention Is Needed to Solve the Housing Crisis? It Just Ain’t So!” by Steven [...]

]]> http://www.thefreemanonline.org/departments/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/comment-page-1/#comment-19578 Government to Step up Mortgage-Default Program : The Freeman | Ideas On Liberty Mon, 30 Nov 2009 13:26:15 +0000 http://www.thefreemanonline.org/uncategorized/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/#comment-19578 [...] Timely Classic “Government Intervention Is Needed to Solve the Housing Crisis? It Just Ain’t So!” by Steven [...] [...] Timely Classic “Government Intervention Is Needed to Solve the Housing Crisis? It Just Ain’t So!” by Steven [...]

]]> http://www.thefreemanonline.org/departments/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/comment-page-1/#comment-16476 Kevin Beck Sun, 02 Aug 2009 16:07:15 +0000 http://www.thefreemanonline.org/uncategorized/government-intervention-is-needed-to-solve-the-housing-crisis-it-just-aint-so/#comment-16476 I believe your analysis is correct. If FNMA, FHLMC, and GNMA had never been created, then the market would naturally reset at a (lower) equilibrium. These entities allowed for the securitization of martgages, creating a much larger pool of funds to chase homebuyers with. If the free market were more rational, all mortgage pools would be more localized, and this would prevent the irrational increases in home prices (not values: Values implies that the benefits of the house beyond providing shelter have changed). Therefore, the longer the meddling persists, the less likely that true equilibrium will be reached. I believe your analysis is correct. If FNMA, FHLMC, and GNMA had never been created, then the market would naturally reset at a (lower) equilibrium. These entities allowed for the securitization of martgages, creating a much larger pool of funds to chase homebuyers with. If the free market were more rational, all mortgage pools would be more localized, and this would prevent the irrational increases in home prices (not values: Values implies that the benefits of the house beyond providing shelter have changed). Therefore, the longer the meddling persists, the less likely that true equilibrium will be reached.

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