A survey of housing finance in other countries sheds light on the distortion that government subsidies for housing can cause in national economies. Professors at New York University’s Stern School of Business have pointed out that one thing that Spain and the United States have in common is a “massive misallocation of their economy’s resources to construction. The oversupply is… Read more »
Contrary to the Fannie & Freddie defenders’ assertions that America’s unique GSE-model of housing finance is the “envy of the world,” yesterday’s full committee hearing found that the U.S. ranks only 17th in the world in terms of the rate of homeownership. Our 65% homeownership rate puts us behind Australia, Ireland, Spain, and the United Kingdom, all of which provide far less… Read more »
Proponents of the GSE model of housing finance often assert that the costs of that model are justified because it provides benefits that no other countries enjoy. In fact, before the collapse of the GSEs in 2008, their supporters often argued that “American housing finance is the envy of the world.” But the reality is that for all of the resources and subsidies that the GSEs directed (we… Read more »
On Wednesday the House will consider H.R. 1256, the Swap Jurisdiction Certainty Act.
The Problem:
Swaps are uniquely tailored financial products traded globally (cross-border) by a variety of industries to manage risk. Under the Dodd-Frank Act, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are responsible for regulating swaps trades… Read more »
We’ll hold four hearings -- including full committee action on sustainable housing finance reform -- this week in addition to our three (and a half) bills on the House Floor. Be sure to check back here on the Bottom Line Blog -- and subscribe to our email lists -- for updates throughout the week.
Here’s what’s happening:
We’re told on Tuesday the Rules Committee will meet… Read more »
Wall Street Journal: The Hidden Jobless Disaster
At the present slow pace of job growth, it will require more than a decade to get back to full employment defined by pre-recession standards.
Bloomberg: Can the Fed Make Up Its Mind on QE?
When the Federal Reserve first introduced its either/or stance on quantitative easing, I wasn’t sure if it was a PR ploy or a serious… Read more »
Yesterday the Financial Stability Oversight Council (FSOC) put hardworking taxpayers at greater risk of being forced to fund yet another Wall Street bailout.
Under their Dodd-Frank authority, the FSOC took preliminary steps to designate several non-bank financial institutions, including AIG, Prudential Financial and GE Capital, as “systemically important financial institutions” (SIFIs).… Read more »
On Wednesday the Capital Markets & GSEs Subcommittee will hold our only scheduled hearing for the week examining the market power and impact of proxy advisory firms.
But don’t get too comfortable. Next week we’ve scheduled four hearings, including a full committee hearing on alternative housing finance models as part of our effort to forge a sustainable housing finance system.… Read more »
Phil Gramm and Steve McMillin: The Debt Problem Hasn’t Vanished
President Obama has raised the national debt by nearly $6.2 trillion, the equivalent of $78,385 per family of four. It is true that projected deficits recently have been reduced…But unless the economy soars, or a significant budget agreement is reached, the most lasting legacy of the Obama presidency will be a $10… Read more »
During the first term of the Obama administration, our nation racked up four straight years of trillion dollar-plus deficits and as much debt as was accumulated in our first 200 years. Under President Obama, our national debt has increased by more than $6 trillion – the largest increase under any president in history.
But according to President Obama's Treasury Secretary, Jack Lew, it’s… Read more »
