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Discussion Starter · #1 ·
Gross Urges 'Full Nationalization' of Housing Finance - BusinessWeek

I have to say, I didn't expect this, but at the same time he's not entirely crazy.

The biggest problem with Freddie Mac and Fannie Mae, in my opinion at least, is their dual mandate - they're federally chartered to provide subsidized, below-market loans to targeted American homeowners, but at the same time they're privately held so they have to generate profits for their shareholders. It's kind of a double bind - there's not much money in loaning money at a rate below what a borrower's risk profile would suggest, at least in the long run.

So, one of two things can happen. Either they can be shrunk drastically so they're simply not much of a risk, and only provide assistance to a small number of homeowners. Or, they could do what this guy wants - completely nationalize the entities, and stop demanding that they both be profitable AND do a public service.

I'm not sure I agree with him personally - I think home ownership has been over-sold as an "investment" in America and a lot of people took on mortgages they couldn't realistically afford because they were told it was a "safe" investment, which a quick look at the huge chunks of the housing market that are underwater suggests is definitely not the case, and I'd rather see the government play a smaller role in helping people buy houses. But, this is definitely a viable alternative to the status quo.
 

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Discussion Starter · #5 ·
Why not? Nuke her, and there'd be no one to nag you about taking out the trash or turning down your amps. :woohoo:
 

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Actually, I kinda doubt his wife does that. Her patience is approaching infinite. After all, look who she's married to!
 

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Discussion Starter · #8 ·
Ahh. Nevermind then. :vince:
 
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