The Daily Dish

No, not Steely Dan. The reasoning necessary to arrive at the left’s preferred policy position: have the government do it. The basic game plan is the same in all policy areas. Take the labor market, for example. Step 1: Assert that growth and higher productivity simply do not help the average worker. It’s not true, but say it enough and people will believe it is true (an insight traceable to Nazi Propaganda Minister Paul Goebbels); massaging a few misleading statistics helps, too. Step 2: If the private enterprise game is rigged then compensation should be the business of the government — minimum wages, maternity leave, family leave, executive compensation, overtime, and what kind of coffee is in the break room (ok, I made that one up). Move to <insert policy area here>. Rinse. Repeat.

Q&A on the Anniversary of the GSEs’ Government Bailout

This week marks the seventh anniversary of Fannie Mae’s and Freddie Mac’s conservatorship. The government bailed out the two entities, collectively called the GSEs (government-sponsored enterprises), in September 2008 to the tune of $188 billion. Little has since been accomplished to appreciably disentangle the government from the housing finance system. Here’s a quick guide on where things stand.

The Daily Dish

In the aftermath of the financial crisis and Great Recession, U.S. housing markets were beset by two problems. In some areas; notably Ohio, Michigan, and other parts of the center of the country; poor economic growth had driven homeowners to use their homes as ATMs and the pricey first plus second mortgages proved too difficult to service as the economy worsened further. In the “sandy states” of California, Nevada, Arizona, Florida and the like, a boom in housing prices lured buyers into highly leveraged housing financial packages that proved unsustainable when the house-price bubble burst. Homeowners found themselves “underwater,” with homes worth less than the mortgage balance.

Major Energy Producing States Have Fared Better During Recovery

Economic recovery following the Great Recession has been mediocre at best. However, states that lead in energy production have performed much better throughout the recovery than those that import the majority of their energy from other states. AAF’s research finds that since 2009, major energy producing states have:


Double the rate of income growth than energy importers, Over double the rate of job growth than energy importers, and Robust housing markets, with faster price appreciation and more stable home construction than energy importers.

Dodd-Frank at 4: More Regulation, More Regulators, and a Sluggish Housing Market

The Dodd-Frank Act limps into its fifth year of implementation, saddled by an unconstitutional recess appointment, several setbacks in federal courts, and an expensive regulatory portfolio.  The Act imposed 398 new regulations that have thus far added more than $21.8 billion in costs and 60.7 million paperwork burden hours. These measures have transformed the financial industry, overhauled mortgage lending, and directly affected the availability of credit. With roughly one-quarter of the law still left to implement, it’s safe to say that the true economic impacts won’t be understood for years.

3 Key Factors To Evaluate Treasury’s Latest Housing Plan

Treasury Secretary Lew announced today yet another extension of the Making Home Affordable (MHA) program, this time through 2016, while touting its successes. He further called on Congress to extend the Mortgage Forgiveness Debt Relief Act and pass housing finance reform and announced a Federal Housing Administration program of lowered interest rates for multifamily housing. Now eight years since the housing bubble burst and five years since the Obama administration first rolled out dozens of programs all designed with the aim of helping hurting borrowers stay in their homes, the administration continues to push programs that have had decidedly mixed results. Lew’s announcement comes on the heels of Federal Housing Finance Agency’s (FHFA) new outreach efforts for the Home Affordable Refinancing Program (HARP). 

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