UK Only Article:
Art of the lie
On housing, wild horses, Scotland, child sex abuse, longevity
You argued that America has in effect nationalised its housing market (“Comradely capitalism”, August 20th). But the government has been supporting home financing and incentives for the past 80 years, whether through the mortgage-interest deduction or programmes that ensure affordable mortgage capital. Washington’s inability to press forward with reform has caused uncertainty and restricted credit for homebuyers. People are confident that if they qualify for a mortgage a bank will lend them the money. The Federal Housing Association, Fannie Mae, Freddie Mac and other programmes provided this stability. They took on the credit risk of mortgages so long as Wall Street took on the interest-rate risk. This system must be protected.
The FHA, Fannie Mae and Freddie Mac have worked hard to further their public mission of supplying mortgage capital during depressed markets while protecting their integrity. During the housing recovery they have repaired their …
via Economic Crisis http://ift.tt/2bVNb3A