US-Backed Jumbos: Time To Pull The Plug
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  • There are myriad examples of government working at cross purposes with itself and its stated goals.

    Reminds me of my poor granny, who we thought was on her deathbed with wild blood pressure fluctuations, no appetite…

    Finally, one doctor looked at that vast array of meds she was taking and determined they were interacting badly with one another, so he took her off of all of them, got her stabilized and put her back on only the few essential ones.

    There’s a lesson in there somewhere for Uncle Sam.

  • ken handler

    lt appears that an 11% reduction in US backed mortgage is a drop in the bucket of enormous number backed by the US by keeping fannie and fredy from bankruptcy. The US cannot do otherwise

  • Succinct. Identifying and cutting cross-purposes is a strategy that will work widely, as silverfiddle notes. A lot of family folk send each other cash gifts to buy something nice at Christmas. If I’m going to send you $75 and you mean to send $50, then $25 one way nets it out properly. That’s an amusing thought between kindly-intentioned adults. When laws compete with each other to exact compliance, it’s no laughing matter and mischief follows.

  • Jim.

    Have you ever seen what $500,000 can get you in Sunnyvale, CA? Korean-war vintage, gaps between the walls and roof, 900 square feet if you’re lucky… Hardly a “mansion”.

    But it does put forward a couple of interesting question: if cities are so all-fired “efficient”, why is it that they’re so unbelievably expensive for the people who live there? Urbanists are nothing but hucksters and shills for real estate interests.

    The other interesting question being, of course, why would anyone pay that amount for such a house? The answer being, of course, because they can — because Leftists idiotically believe in throwing more money at a scarcity-caused problem, without that money going directly into expanding supply.

    Capitalism works because when more money is spent on scarce goods, that encourages the enterprising to work to make those goods less scarce. Subsidizing goods without expanding supply is how bubbles form.

  • dnewlin

    krn handler: fannie and freddie ARE bankrupt. This is the least we can do.

  • Jacksonian Libertarian

    Welcome to the TEA Party Mr. Mead, do you take your’s with sugar or lemon or both?
    There’s no fixing the Government Monopoly, the only thing we can do to limit the damage is to limit the size of the monstrosity.

  • jaed

    I assume that the stately Mead manor is in a relatively low-priced housing market? Because where I come from, $800,000 will not buy you a mansion. It will buy you a 3BR/2BA ranch house with a front yard in a pleasant family neighborhood with decent schools (but not the best). Millionaires, unless they’re thrifty millionaire-next-door sorts, do not buy such houses. The millionaires are spending five million or so on a house.

    In a market where the “needs-lots-of-TLC” category is designated “$500,000 or less”, these loan amounts aren’t out of line. Most of the mortgages written there for 10-20% down are necessarily that size.

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