I’ve given the Treasury the benefit of the doubt so far with respect to its rescue efforts. However, preliminary reports of a new initiative have me reconsidering my position. The new plan would use nationalized mortgage giants Fannie Mae
Didn't we learn anything?
Political pressure to provide "affordable homeownership" was one of the root causes of Fannie and Freddie's failure and the broader housing crisis. Now the government wants to use both organizations to artificially reduce mortgage rates in order to prop up home prices?
I understand that we are in a crisis, but large private lenders, including Citigroup
We mustn't scare off private capital
There is no question the government has a massive role to play in averting the worst of this crisis; however, I wonder if it isn't beginning to overstep its bounds. Private capital has its own role to play -- if we will allow it to. Yesterday, China's major sovereign wealth fund, China Investment Corp -- owner of a 9.9% stake in Morgan Stanley
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