Politics and Culture

Fannie and Freddie and the whole strategy shows liberal policy (even when Bush did it) at its New Deal, famous for such policies as paying farmers to not grow food and then giving people money to afford food, dumbest.

So, the government sets up these agencies to encourage banks to lend money to poor people so that they can afford houses, right? Not only does such a policy drive up housing prices, making houses more unaffordable, but it ruins the economy when those people can't pay the loans back.

What could government, at all levels, have done instead? How about streamlining or reducing housing regulation? In Seattle, regulation adds $200,000 to the cost of a house. Seattle taxpayers then spend money to subsidize housing.