MedWorm provides a medical RSS filtering service. Over 6000 RSS medical sources are combined and output via different filters. This feed contains the latest medical blog items that have been tagged with 'freddie'. Sat, 03 Sep 2011 02:25:02 +0100 http://www.medworm.com/index.php?rid=5139684&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FY7qfzaXp3V4%2F By Caleb O. BrownThe mortgage interest income tax deduction is popular among homeowners (read: likely voters) despite its role in distorting housing and related markets, its contribution to the housing bubble and its enabling of additional household debt. Never mind that there isn’t much evidence that the deduction boosts home ownership in the United States. Consider also that the tax break largely benefits affluent homeowners living in expensive urban areas. As Mark Calabria notes in today’s Cato Daily Podcast, it’s well past time for the mortgage interest deduction to be replaced by lower marginal tax rates for all earners. End the Mortgage Interest Deduction is a post from Cato @ Liberty - Cato Institute Blog (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=5139684 Thu, 18 Aug 2011 20:26:46 +0100 5139684 http://www.medworm.com/index.php?rid=5139703&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIHjvbW8In5A%2F By Mark A. CalabriaThe Washington Post is reporting that President Obama has assigned his staff with the task of designing a new set of government guarantees behind the U.S. mortgage market. Although as the Post also reports the “approach could even preserve Fannie Mae and Freddie Mac.” That’s correct. Despite their role in driving the housing bubble and the already $160 billion in taxpayer losses, President Obama appears to be considering just putting the same failed system in place. Of course, we’ll be promised that it will all work better this time. Perhaps most offensive is that the Post reports that Obama “officials don’t want to punish the thousands of Fannie and Freddie employees who have specialized knowledge about the mortgage market.” Serious... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=5139703 Tue, 16 Aug 2011 16:04:20 +0100 5139703 http://www.medworm.com/index.php?rid=5028138&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FyZZPNvIJeBs%2F By Mark A. CalabriaIt’s probably never wise to inject oneself into the middle of a food fight, but since I think both sides actually have something right and something wrong, its been a worthwhile debate to follow.  That is the ongoing debate between Peter Wallison at the American Enterprise Institute and David Min at the Center for American Progress (at least we can all agree we love America) on the role of Fannie Mae (and Freddie Mae) in the financial crisis.  If you can’t guess, Peter says Fannie/Freddie caused the crisis, David says they didn’t. David makes an interesting point, one I’ve actually argued, in his latest retort.  That is, this wasn’t exclusively a housing crisis/bubble.  Other sectors, like commercial real estate, boomed and then went bus... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=5028138 Fri, 15 Jul 2011 12:40:43 +0100 5028138 http://www.medworm.com/index.php?rid=4921395&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FWH-VnhnyEKE%2F By Roger PilonAt POLITICO this morning we find a long opinion piece by Matt Stoller, “Public Pays Price for Privatization,” summarized as “The real infrastructure trend in America today is privatizing what is left.” If that weren’t enough to give you the flavor of the piece, the bio line tells us that “Stoller worked on the Dodd-Frank financial reform law and Federal Reserve transparency issues as a staffer for Rep. Alan Grayson (D-Fla.). He is currently a fellow at the Roosevelt Institute.” Say no more – except, there’s more to say. Stoller notes, among much else, that Kansas Gov. Sam Brownback “just turned over arts funding to the private sector, making Kansas the only state without a publicly funded arts agency.” Don’t reel in horror; the cited Los Angeles Times ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4921395 Thu, 09 Jun 2011 14:35:59 +0100 4921395 http://www.medworm.com/index.php?rid=4780291&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FzRRDs2EfY94%2F By Neal McCluskeyThere is a reason “ivory tower” has a negative connotation, evoking images of effete snobs walled away in ivory opulence as they look down on the commoners and demand outsized respect. The image, unfortunately, is occasionally accurate for individual academics, and almost always so for the whole of academia, which is funded by massive subsidies taken from taxpayers, but walled off by claims that no price can or should ever be affixed to the “public good” it produces. Add to this its professorial residents often demanding limitless freedom — and job security – to say whatever they want about such evil pursuits as “big business” that generate the tax dollars that keep the tower cushy and its jobs secure, and... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4780291 Tue, 03 May 2011 20:13:01 +0100 4780291 http://www.medworm.com/index.php?rid=4723790&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fqe59_xBEk1A%2F By George Scoville Regulatory privilege is not consistent with competitive markets–that’s why Fannie Mae and Freddie Mac need reform. Thank goodness the U.S. Supreme Court found that education tax credits are not consistent with the fictitious notion of a “tax expenditure.” President Obama’s budget plan is not consistent with either his own deficit commission’s plan or the Constitution. The modern “Executive State” is not consistent with Article II of the Constitution. Cyberbullying laws are not consistent with the First Amendment and our concept of free speech: Monday Links is a post from Cato @ Liberty - Cato Institute Blog (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4723790 Mon, 18 Apr 2011 14:12:59 +0100 4723790 http://www.medworm.com/index.php?rid=4610794&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F-CmQhTHrVgc%2F By Mark A. CalabriaDebates over the causes of the financial crisis sometimes center on whether Fannie Mae and Freddie Mac were "late to the party" in terms of subprime lending.  As it relates to the recent crisis, I address this question elsewhere.  The GSEs and their apologists do claim to have been big contributors to one party: the expansion of homeownership in the United States.  Yet the facts suggest otherwise. The chart below compares the GSE's market-share, in terms of home mortgage lending (as reported in the Fed's Flow of Funds data), with the national homeownership rate (as reported in the Decennial Census).  The chart makes readily apparent that the largest increases in homeownership occurred before the GSEs played much of a role, if any, in the mortgage market.  For ins... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4610794 Fri, 18 Mar 2011 19:04:15 +0100 4610794 http://www.medworm.com/index.php?rid=4605812&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FjPnfq1s6ZeU%2F By George Scoville "If financial institutions are indeed better than consumers at managing interest risk, then those companies should be able to offer consumers attractive terms for doing so — without the moral hazard of an enormous taxpayer backstop." We should be thankful that the president is spending time on his golf game. After all, he recently reinstated military tribunals at Guantanamo Bay and has continued the use of extra-constitutional prisons in the U.S. after the Bush era. "It’s odd that debate here centers on a no-fly zone, a form of military intervention that shows support for rebels without much helping them." Does Haley Barbour really want to cut defense spending? Or is he just really politically astute?  Thursday Links is a post from Cato @ Liberty - Cato Institute ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4605812 Thu, 17 Mar 2011 14:31:19 +0100 4605812 http://www.medworm.com/index.php?rid=4600518&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FPBvdvV7emeY%2F By George Scoville America's unemployment rate has nothing to do with immigration. It's possible to cut waste in government without succumbing to the Washington Monument ploy. Does this anti-obesity crusade make me look fat? (No, the junk science behind it shaping policy does.) Did Wall Street greed create the housing crisis? Or did government subsidies incentivize subprime lending by buying up 40% of new private-label subprime mortgages during the height of the housing boom? Wednesday Links is a post from Cato @ Liberty - Cato Institute Blog (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4600518 Wed, 16 Mar 2011 15:59:30 +0100 4600518 http://www.medworm.com/index.php?rid=4592360&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FV43-r6AbKQI%2F By Mark A. CalabriaThe Washington Post is reporting that current Federal Housing Administration (FHA) head David Stevens, who only last week announced he was leaving FHA, is going to be the new head of the Mortgage Bankers Association (MBA). When Stevens was first nominated to head FHA, I have to admit I was concerned.  FHA has a long history of prioritizing the interests of the mortgage industry over that of the taxpayer.  And here was a guy right out of the real estate industry (former Freddie Mac exec).  My expectations weren't exactly high.  Maybe because of that, I've been largely impressed.  As FHA Commissioner, Stevens has taken eliminating fraud seriously, as well as avoiding a taxpayer bailout of FHA (so far). All that said, it is hard to imagine that in under a week's time, ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4592360 Tue, 15 Mar 2011 18:22:09 +0100 4592360 http://www.medworm.com/index.php?rid=4592362&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FY7tesAuqJ3E%2F By Mark A. CalabriaAs Congress and the White House continue to debate the future of Fannie Mae and Freddie Mac, one of the oft heard concerns is that if we eliminate all the various mortgage subsidies in our system, then the cost of a mortgage will increase.  There certainly is a basic logic to that concern.  After all, why have subsidies if they don't lower the price of the subsidized good.  Of course some, if not all, of said subsidy could be eaten up by the providers/producers of that good. All this begs the question, with all the subsidies we have for mortgage finance, are mortgages actually cheaper in the U.S.?  While not perfect, one way of answering that question is to look at mortgage rates in other countries.   Although every developed country has some sort of government in... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4592362 Tue, 15 Mar 2011 16:19:20 +0100 4592362 http://www.medworm.com/index.php?rid=4570527&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FGUU2a_74L4w%2F By Mark A. CalabriaWith State AGs and the Federal Government pushing to further extend the mortgage foreclosure process for late borrowers, one might assume that these government officials believe that further delay has no costs, and is at most a transfer from the lender to the borrower.  Judging from the results of a recent working paper, by economists Shuang Zhu and Kelley Pace at Louisiana State, they would be wrong.  Further foreclosure delays impose significant costs, not just on the economy and lenders, but also on other borrowers. Zhu and Pace start with the observation:   "The longer the period between first missing payment and foreclosure sale, the more valuable the default option becomes. The borrower preserves the option to either keep defaulting or cure the default in the f... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4570527 Thu, 10 Mar 2011 18:19:05 +0100 4570527 http://www.medworm.com/index.php?rid=4489646&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fkn09vYMttp4%2F By Mark A. CalabriaThe latest canard offered for keeping taxpayers on the hook for mortgage risk is that, without such, homeownership would limited to the wealthy.  Sarah Rosen Wartell of the Center for American Progress stated before the House Subcommittee on Capital Markets, "The high cost, limited availability, and high volatility of pre-New Deal mortgage finance meant that homeownership was effectively limited to the wealthy."  Congressman Al Green repeated the point.  As I've generally found Sarah to be one of the more reasonable CAP employees, and that this is fundamentally an empirical question, I would have expected her to offer some evidence to support such a claim.  Alas, she did not.  So I will. According to the US Census Bureau, at the turn of the century in 1900, the US h... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4489646 Wed, 16 Feb 2011 21:52:02 +0100 4489646 http://www.medworm.com/index.php?rid=4482741&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FL1MuKwILD7g%2F By Mark A. CalabriaOn Friday the Obama Administration released its report on "reforming America's Housing Finance Market."  The report claimed that the Administration would work toward "winding down Fannie Mae and Freddie Mac on a responsible timeline."  While the report was silent on what a responsible timeline would be (surprise, no details); I assumed, perhaps naively, that a reasonable timeline would be 5 to 6 years.  So you can imagine my surprise while reading the Administration's budget proposal (see Table S-12 of the summary tables), released Monday, that the Administration is projecting that the government will be receiving, between 2012 and 2021, $89 billion in dividend payments from Fannie Mae and Freddie Mac.  In 2021 alone the White House projects $8 billion in dividend p... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4482741 Wed, 16 Feb 2011 14:18:18 +0100 4482741 http://www.medworm.com/index.php?rid=4464479&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FTyNgbnj1zEA%2F By Mark A. CalabriaRemember that “tough study” promised by Senator Chris Dodd to deal with Fannie Mae and Freddie Mac?  Well it is finally out.  All 22 pages (of doubled-spaced large font).  And less than half those pages actually discuss Fannie and Freddie. While the report does say a lot of the right things — such as protecting the taxpayer — it is awfully short on any real details.  And in many areas, the report makes clear that the Obama administration intends to keep the taxpayer on the hook for future losses arising from Fannie and Freddie.  For instance, after assuring us that the GSEs will have sufficient capital to meet their obligations, including debt, the report tells us that such capital will not come from investors, but from the taxpayer.  One has to wonder wh... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4464479 Fri, 11 Feb 2011 17:00:04 +0100 4464479 http://www.medworm.com/index.php?rid=4394422&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FJHtVMOW7kH0%2F By Tad DeHavenLast week the conservative House Republican Study Committee released its Spending Reduction Act of 2011, which would cut federal spending by $2.5 trillion over the next ten years. Sen. Jim DeMint (R-SC) will introduce it in the Senate. The vast majority of the savings, $2.3 trillion, would come from freezing non-defense discretionary spending at fiscal 2006 levels over the next ten years. The rest would come from cutting the federal civilian workforce, privatizing Fannie Mae and Freddie Mac, repealing the state Medicaid FMAP increase, repealing remaining stimulus funds, and immediately reducing non-security discretionary spending to fiscal 2008 levels. Of the $2.3 trillion over 10 years that would be saved by freezing nondefense discretionary spending at fiscal 2006 levels, o... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4394422 Mon, 24 Jan 2011 19:45:54 +0100 4394422 http://www.medworm.com/index.php?rid=4377558&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FUrfJNoB1IH0%2F By Mark A. CalabriaChinese President Hu Jintao’s visit to Washington brought renewed focus on China’s currency.  It was likely the largest point of discussion between President Obama and President Hu.  I suspect a less public, but related, issue was China looking for some certainty that America would make good on its obligations; after all, China is our largest lender. What is often missed is the connection between these two issues:  currency and debt.  When China receives dollars for the many goods it sells us, instead of recycling those dollars into the purchase of US goods, it uses that money mostly to buy US Treasuries and Agencies (Fannie/Freddie securities).  These large Treasury/Agency purchases (foreign holdings of GSE debt are over $1 trillion) have the effect of... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4377558 Thu, 20 Jan 2011 16:26:17 +0100 4377558 http://www.medworm.com/index.php?rid=4285185&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F31i8jvdjJy8%2F By Mark A. CalabriaJust in time for the holidays, the Congressional Budget Office has released its analysis of the costs and benefits of various alternatives to our current system of mortgage finance, particularly the role of Fannie Mae and Freddie Mac. The report examines three possibilities: A hybrid public/private model in which the government provides explicit guarantees on privately issued mortgages or MBSs; A fully public model in which a wholly federal entity would guarantee qualifying mortgages or MBSs; or A fully private model in which there would be no special federal backing for the secondary mortgage market. The report doesn’t really push one option over another, but simply lays out the advantages and disadvantages of each.  Some highlights worth keeping in mind as th... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4285185 Thu, 23 Dec 2010 17:52:03 +0100 4285185 http://www.medworm.com/index.php?rid=4265685&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FLgWHTqcgriY%2F By Mark A. CalabriaA recurring concern we have heard since the financial crisis erupted is that banks are simply not lending, and that this is holding back economic activity.  If only banks would lend, the economy would grow.  As usual, the truth is a little more complex.  Unlike in the Great Depression, and despite about 300 bank failures, the balance sheets and deposits of insured commercial banks and thrifts has been steady, if slowly, expanding throughout the financial crisis and recess.  Banks have continued lending during this time; however, they have changed who they are lending to.  Over the last two years we have witnessed a massive shift from lending to the private sector to lending to the public. The chart below shows banking business lending and bank holdings of U.S. gover... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4265685 Thu, 16 Dec 2010 20:14:31 +0100 4265685 http://www.medworm.com/index.php?rid=4018160&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FyR11yQMw_ls%2F By Mark A. CalabriaAn argument often heard for keeping Fannie Mae and Freddie Mac, or some sort of subsidy for mortgages, is the desire to keep the 30 year fixed rate mortgage “affordable.” The 30 year fixed certainly has some merits – which borrowers should be willing to pay for – but it also has the downside of reducing the impact of monetary policy in stabilizing the economy. Generally interest rates go down in a recession and up in an expansion.  Part of this is the reaction of the Federal Reserve, which tends to cut rates in a recession, but part is also the fact that the demand for credit also declines in a recession and increases in an expansion. If borrowers moved to adjustable rate mortgages, then in recessions they would likely see a reduction in their mo... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4018160 Thu, 30 Sep 2010 15:43:19 +0100 4018160 http://www.medworm.com/index.php?rid=4013146&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FH6U5zwCeVMo%2F By Mark A. CalabriaA common defense offered for keeping Fannie Mae and Freddie Mac, or something like them, is that the market simply cannot absorb the same level of mortgage lending without them.  The central flaw in this argument is that Fannie and Freddie themselves must be funded by the market.  So if the financial markets can absorb X in GSE debt, then the financial markets can absorb X in mortgages. Different market participants currently face different capital requirements for the same assets.  To some extent, Fannie and Freddie were a vehicle for shifting mortgage risk from higher capitalized institutions to less capitalized.  If the Obama administration and bank regulators are serious about closing “regulatory gaps” then all entities backed by the govt, implicit o... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4013146 Tue, 28 Sep 2010 18:21:31 +0100 4013146 http://www.medworm.com/index.php?rid=3954228&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F_xVwx6kegIc%2F By Mark A. CalabriaLike President Bush before him, Obama has a knack for taking the worst ideas of his opponents and making them his own.  It is truly bipartisanship in the worst of ways (think Sarbanes-Oxley, the TARP or No Child Left Behind).  The newest example is the President’s proposed “infrastructure bank.”  A bill along those lines was introduced a few years ago by then Senator Hagel, although the idea is far from new. First, let’s get out of the way the myth that we have been “under-funding” intrastructure.  Take the largest, and usually most popular, piece:  transportation.  Over the last decade, transportation spending at all levels of government has increased over 70 percent.  One can debate if that money has been spent wisely, but the... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3954228 Thu, 09 Sep 2010 16:03:26 +0100 3954228 http://www.medworm.com/index.php?rid=3895875&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FCyoouLuMvFk%2F As the debate on the future of Fannie Mae and Freddie Mac heats up, a useful exercise is to ask how does the U.S. system of mortgage finance compare to other countries, with the obvious caveat that there are a lot of differences to account for.  A good place to start is a recent working paper by Michael Lea at San Diego State University.  The first observation from Dr. Lea’s paper is that several countries, with far less government involvement in the mortgage market, have comparable, if not higher, homeownership rates than the United States.  These countries include Australia, Ireland, Spain, the United Kingdom and Canada.  He also found that countries with less government support of their rental markets also have higher ownership — not surprising since higher rental subs... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3895875 Fri, 20 Aug 2010 20:34:33 +0100 3895875 http://www.medworm.com/index.php?rid=3880828&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FgrG-A9SYFKA%2F Yesterday the Treasury and HUD hosted a “Conference on the Future of Mortgage Finance.”  It was an invite-only of Washington insiders.  Somehow I found myself on the invite list, which was almost enough to make me believe that the Administration was finally serious about reforming Fannie and Freddie. After getting over the nausea of being in a room full of people who I personally knew bore some responsibility for the mess we are in, I was then shocked that, compared to the rest of the room, Treasury Secretary Geithner came across as the radical.  On one hand Geithner was very clear that the Administration was going to push for some sort of government guarantee, but also that the current structure, particularly Fannie and Freddie, were broken.  He also went as far as admitti... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3880828 Wed, 18 Aug 2010 18:50:52 +0100 3880828 http://www.medworm.com/index.php?rid=3827055&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIjWWuoMICgE%2F By Tad DeHavenAs the fall elections approach, two factions within the congressional GOP have emerged. The first faction, which generally controls the Republican leadership, is short-term oriented and just wants to return the GOP to power in Congress. Riding the wave of voter discontent over the government’s finances is a means to an end — the end being power. The second, and considerably smaller faction, is more ideas driven and views the upcoming election as an opportunity to push for substantive governmental reforms. Whereas the “power first faction” offers platitudes about smaller government, the “ideas first faction” isn’t afraid to offer relatively bold suggestions for confronting the federal government’s unsustainable spending. The ideas first faction is willing t... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3827055 Thu, 05 Aug 2010 12:42:06 +0100 3827055 http://www.medworm.com/index.php?rid=3671670&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FEMC2kCMdGQs%2F By Tad DeHavenIn a recent speech to real estate interests, former Clinton HUD secretary Henry Cisneros preposterously claimed that the recent housing meltdown “occurred not out of a governmental push, but out of a hijacking of the homeownership process by some unscrupulous interests.” The only criticisms Cisneros could muster for the government’s housing policies over the past 20 years were that regulations weren’t tough enough and it should have focused more on rental subsidies. The reality is that Cisneros-era HUD regulations and policies directly contributed to the housing bubble and subsequent burst as a Cato essay on HUD scandals illustrates: Cisneros’s HUD pursued legal action against mortgage lenders who supposedly declined higher percentages of loans for minorities than ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3671670 Thu, 17 Jun 2010 17:50:21 +0100 3671670 http://www.medworm.com/index.php?rid=3648472&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FYrCpVrDzsKE%2F By Mark A. CalabriaToday begins the televised political theatre that Barney Frank has been waiting months for:  the first public meeting of the House and Senate conferees on the two financial regulation bills.  While there are a handful of important differences between the House and Senate bills, these differences are overshadowed by what the bills have in common.  The most important, and tragic, commonality is that both bills ignore the real causes of the financial crisis and focus on convenient political targets. As our financial system was brought to its knees by an exploding housing bubble, fueled by government mandates and distortions, one would think, just maybe, that Congress would roll back these distortions.  Despite their role in contributing to the crisis and the size of ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3648472 Thu, 10 Jun 2010 15:35:23 +0100 3648472 http://www.medworm.com/index.php?rid=3629618&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F5Ij5q5GF5Jg%2F By Mark A. CalabriaOn the surface the failures of Fannie Mae and Freddie Mac would appear to have little connection to the fiscal crisis in Greece, outside of both occurring in or around the time of a global financial crisis.  Of course in the case of Fannie and Freddie, primary blame lies with their management and with Congress.  Primary blame for Greece’s problems clearly lies with the Greek government.  Neither Greece or Fannie would have been able to get into as much trouble, however, if financial institutions around the world had not loaded up on their debt.  One reason, if not the primary reason, for bailing out both Greece and the US’s government sponsored enterprises is the adverse impact their failures would have on the banking system. Yet bankers around the world ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3629618 Thu, 03 Jun 2010 20:16:19 +0100 3629618 http://www.medworm.com/index.php?rid=3560219&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FEDFJwoQlI6o%2F By Mark A. CalabriaYesterday the Senate rejected an amendment by Senators McCain, Shelby and Gregg that would have capped the taxpayer losses on Fannie and Freddie at $200 billion each.  The amendment would have also brought Fannie and Freddie onto the Federal budget, forcing the government to admit what most of us already suspect: we’re on the hook for their bad behavior.  All Republicans, with the additions of Democrats Feingold and Bayh, voted for the failed amendment.  As a substitute, which passed along party lines, Senator Dodd proposed that the Treasury Department would “study” the issue and report back to Congress. While it was not surprising that Dodd lead the opposition to the McCain amendment (it is not the first time he’s protected Fannie and Freddie... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3560219 Wed, 12 May 2010 16:15:51 +0100 3560219 http://www.medworm.com/index.php?rid=3494297&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FspXUjt4XBzk%2F By Alan ReynoldsThe Obama administration thinks it has discovered the perfect formula to cram legislation through in a hurry:  Demonize some prominent firm within an industry you plan to redesign, and then pass a law that has nothing to do with the accusation against the demonized firm.  They did this with health insurance and now they’re trying it with finance. With health insurance, the demon was Anthem Blue Cross Blue Shield of California, which Obama accused of raising premiums by “anywhere from 35 to 39 percent.” Why didn’t some curious reporter interview a single person who actually paid 39% more, or quote from a letter announcing such an increase?  Because it didn’t happen.  Insurance premiums are regulated by the states, and California wouldn’t approve such a boost.... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3494297 Wed, 21 Apr 2010 19:46:01 +0100 3494297 http://www.medworm.com/index.php?rid=3490617&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FMzVJcCMSmrk%2F By Tad DeHavenPeter Wallison calls attention to President Obama’s amnesia regarding events that precipitated Fannie Mae and Freddie Mac’s collapse. Writing in the Wall Street Journal, Wallison points out that in 2005 then-Senator Obama joined with his Democratic colleagues in stopping legislation that would have helped rein in the government-sponsored housing duo’s risky behavior: The bill would have established a new regulator for Fannie and Freddie and given it authority to ensure that they maintained adequate capital, properly managed their interest rate risk, had adequate liquidity and reserves, and controlled their asset and investment portfolio growth. These authorities were necessary to control the GSEs’ risk-taking, but opposition by Fannie and Freddie—then the most p... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3490617 Wed, 21 Apr 2010 12:51:32 +0100 3490617 http://www.medworm.com/index.php?rid=3467736&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F-qJgsKzYZik%2F By Mark A. CalabriaPresident Obama seems to be slowly waking up to the fact that the American public has grown tired of the endless bailout of Fannie Mae and Freddie Mac.  The public has also rejected the talking point that Fannie and Freddie were simply victims of a 100 year storm in the housing market.  So what’s Obama’s response?  To ask for public comment and have public forums. This strategy is clearly one of delaying and avoiding any reform of Fannie and Freddie while pretending to care about the issue.  Where was the public comment and forums on the Volcker rule?  Seemingly the standard is that fixing the real causes of the financial crisis should be delayed and debated while efforts like the Dodd bill, which do nothing to avoid future financial crises, should be r... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3467736 Wed, 14 Apr 2010 15:13:37 +0100 3467736 http://www.medworm.com/index.php?rid=3403865&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FQDepYd-vmKQ%2F By Tad DeHavenAt Tuesday’s congressional hearing on the future of Fannie Mae and Freddie Mac, Rep. Barney Frank (D-MA) said that “It’s a mistake for the government heavily to subsidize homeownership.” Coming from one of the biggest cheerleaders for federal homeownership subsidies, and an architect of the housing meltdown, a conversion from Frank would be welcome. Unfortunately, Frank followed the comment with a call for more rental housing subsidies: We are much better off trying to subsidize rental housing, because when you put people into decent rental housing, you do not confront the problems we have seen putting people inappropriately into homeownership. Frank is correct that tying oneself to a mortgage is much riskier than renting. The federal bias toward homeownership has... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3403865 Thu, 25 Mar 2010 12:48:11 +0100 3403865 http://www.medworm.com/index.php?rid=3378459&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FC2a-Db-bt_8%2F By Mark A. CalabriaMoody’s has announced that it will change its methods for rating debt issued by state and local governments.  Politicians have argued that its current ratings ignore the historically low default rate of municipal bonds, resulting in higher interest rates being paid on muni debt, or so argue the politicians. First this argument ignores that the market determines the cost of borrowing, not the rating.  And while ratings are considered by market participants, one can easily find similarly rated bonds that trade at different yields. Second, while ratings should give some weight to historical performance, far more weight should be given to expected future performance.  Regardless of how say California-issued debt has performed in the past, does anyone doubt that Cali... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3378459 Wed, 17 Mar 2010 20:03:58 +0100 3378459 http://www.medworm.com/index.php?rid=3350256&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F4X94fxr3RvI%2F By Tad DeHavenLast week, after Rep. Barney Frank (D-MA) said that holders of Fannie Mae and Freddie Mac’s debt shouldn’t be expected to be treated the same as holders of U.S. government debt, the U.S. Treasury took the “unusual” step of reiterating its commitment to back Fannie and Freddie’s debt. If ever there was case against allowing a few hundred men and women to micromanage the economy, this is it. Fannie and Freddie, which are under government control, are being used to help prop up the ailing housing market. If investors think there’s a chance Uncle Sam won’t back the mortgage giants’ debt, mortgage interest rates could rise and demand for housing dampen. Therefore, Frank’s comments caused a bit of a stir. However, with the government bailing out anything that walk... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3350256 Wed, 10 Mar 2010 15:28:59 +0100 3350256 http://www.medworm.com/index.php?rid=3306820&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FqqB5rZzd2mc%2F By Tad DeHavenThe two large housing government-sponsored enterprises, Fannie Mae and Freddie Mac, have been in government receivership since September 2008. The U.S. Treasury has given the housing GSEs $112 billion in cash infusions, and this past Christmas Eve it quietly announced it would cover all of Fannie and Freddie’s losses beyond the original $400 billion limit through 2012. The president’s latest budget proposal continues to only count the cash infusions, which it projects to be $188 billion through 2020. On the other hand, the Congressional Budget Office also includes in its budget projections the subsidy cost of new loans or loan guarantees made by Fannie and Freddie, which results in a total projected hit of $370 billion through 2020. The CBO’s rationale for including the... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3306820 Thu, 25 Feb 2010 13:39:37 +0100 3306820 http://www.medworm.com/index.php?rid=3243779&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FuGvDWMzD4jo%2F By Jim HarperIn case you need any evidence that the federal background check system would expand to cover many more things than employment, that process is already underway. H.R. 4586 would require someone seeking modification of a home mortgage loan held by Fannie Mae or Freddie Mac to be verified under the E-verify program. (Same would go for modifying mortgages insured under the National Housing Act.) (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3243779 Thu, 04 Feb 2010 17:02:11 +0100 3243779 http://www.medworm.com/index.php?rid=3239555&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIlqtPPZJIE4%2F By Mark A. CalabriaDespite still defending the Fed’s bailouts, Fed Governor Kevin Warsh gave a speech this morning offering a few insights about reforming our financial system that seem to be lost on both Obama and Bernanke. A few highlights: The mortgage finance system is owed far stricter scrutiny to gather a fuller appreciation of the causes of the crisis. The government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, for example, were given license and direction to take excessive risks. One has to hope that both Bernanke and Obama are listening.  The silence of the Obama administration on fixing Fannie and Freddie is nothing short of shocking and irresponsible.  Any commitment to real reform has to include the GSEs. Granting new powers to resolve failing firms in th... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3239555 Wed, 03 Feb 2010 20:36:16 +0100 3239555 http://www.medworm.com/index.php?rid=3235822&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F5enJUOi_gbY%2F By Tad DeHavenThe Federal Housing Administration has been one of the government’s main instruments for propping up the housing market in the wake of the housing bust. But as has been widely reported, the FHA is in danger of needing a taxpayer bailout because of rising defaults on mortgages it insures. FHA-insured loans originated in 2007 and 2008 – when Bush administration housing officials were mainly concerned with “winning back our share of the market” – are defaulting at higher rates as this graphic from the Washington Post shows: FHA officials are optimistic a bailout won’t be needed, but the Post reports that not everyone shares this optimism: The audit, released in November, found that the cash the FHA set aside to pay for unexpected losses had dipped to historic lows, ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3235822 Wed, 03 Feb 2010 13:36:23 +0100 3235822 http://www.medworm.com/index.php?rid=3171890&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FrBfejxnclPI%2F By Mark A. CalabriaPerhaps I am a little confused, but didn’t the Obama Administration tell the American public only months ago that TARP was turning a profit?   But now the same administration is proposing to assess a fee on banks to cover losses from the TARP. Maybe President Obama is coming around to the realization that the TARP has indeed been a loser for the taxpayer. He appears, however, to be missing the critical reason why: the bailouts of the auto companies and AIG, all non-banks. This is to say nothing of the bailout of Fannie Mae and Freddie Mac, whose losses will far exceed those from the TARP. Where is the plan to re-coup losses from Fannie and Freddie? Or a plan to re-coup our rescue of the autos? If the effort is really about deficit reduction, then it completely misses ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3171890 Wed, 13 Jan 2010 16:29:00 +0100 3171890 http://www.medworm.com/index.php?rid=3163756&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FfwSfET6L-J4%2F By Daniel J. MitchellKudos to Nicki Kurokawa, a former Cato employee, for this short but substantive video explaining “moral hazard.” She notes that government-subsidized risk played a pernicious role in the housing bubble and financial crisis, and warns that “too big to fail” may create similar problems in the future. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3163756 Tue, 12 Jan 2010 13:37:01 +0100 3163756 http://www.medworm.com/index.php?rid=3142516&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fwgoie9_Gg6M%2F By Mark A. CalabriaRecent years have witnessed a multitude of new Federal Reserve programs aimed at bringing stability to our financial markets.  One of the largest programs has been the Fed’s purchase of Fannie Mae and Freddie Mac guaranteed mortgage-backed securities (MBS).  The program was initially announced in November 2008 with the goal of buying up to $500 billion, later expanded to $1.25 trillion.  Clearly we are talking a lot of money. The ultimate objective of the FED MBS purchase program was, in the words of the Fed, to reduce mortgage rates “relative to what they otherwise would have been.”  Did the Fed meet this objective?  According to a new study by Stanford University Economists Johannes Stroebel and John Taylor the Fed did not.  More specificially, ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3142516 Tue, 05 Jan 2010 02:23:03 +0100 3142516 http://www.medworm.com/index.php?rid=3123368&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fi9z0IVvlkFA%2F By Daniel J. MitchellEven though politicians already have flushed $400 billion down the rathole, the Obama Administration has announced that it will now give unlimited amounts of our money to prop up Fannie Mae and Freddie Mac, the two government-created mortgage companies. While President Obama should be castigated for this decision, let’s not forget that this latest boondoggle is only possible because President Bush did not do the right thing and liquidate Fannie and Freddie when they collapsed last year. And, to add insult to injury, Obama’s pay czar played Santa Claus and announced that that a dozen top “executives” could divvy up $42 million of bonuses financed by you and me. Not a bad deal for a group of people that more properly should be classified as govern... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3123368 Sat, 26 Dec 2009 16:27:16 +0100 3123368 http://www.medworm.com/index.php?rid=3067015&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FdKCbdP-Tp1M%2F By Mark A. CalabriaWhile both Greenspan and Bernanke merit considerable blame for helping to inflate the housing bubble, it is worth mentioning what Greenspan did get right:  bringing to the attention of Congress and the public the risk posed to our financial system from Fannie Mae and Freddie Mac. During Bernanke’s confirmation hearing last week, Banking Committee Chairman Chris Dodd criticized the Fed for not doing enough to warn Congress on systemic risks facing the economy.  Given Dodd’s attendance record, both as Chair and before, he can perhaps be forgiven if he missed one of Greenspan’s many appearances before the Banking Committee. To help remind us, on Feb. 24, 2004, Greenspan told the Banking Committee: Concerns about systemic risk are appropriately focused on... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3067015 Mon, 07 Dec 2009 22:18:00 +0100 3067015 http://www.medworm.com/index.php?rid=3030057&cid=t_307815_135_f&fid=35247&url=http%3A%2F%2Fmyjourneywithaids.wordpress.com%2F2009%2F11%2F25%2F2744%2F To mark the eighteenth anniversary of Freddie Mercury’s death (reflections here from his mother) – really 18 years? – his old friends The Muppets have destroyed, all in good fun mind you, Bohemian Rhapsody. All in time for World AIDS Day! (Source: My journey with AIDS) My journey with AIDS blogs http://www.medworm.com/rss/comments.php?id=3030057 Wed, 25 Nov 2009 22:12:12 +0100 3030057 http://www.medworm.com/index.php?rid=3015270&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F6xiawI6-at4%2F In a recent Washington Post op-ed, Professor Joseph Gyourko, chair of the Wharton School’s Real Estate Department, lists what he sees as the five biggest myths about homeownership. Given the central role of federal housing policy, particularly Fannie Mae and Freddie Mac, in our recent financial crisis, it is worth following Professor Gyourko’s suggestion and question whether a national policy of ownership, all the time for everyone, really makes sense. Professor Gyourko’s five myths: 1.  Housing is a great long-term investment. 2.  The homebuyer tax credit makes buying a house more affordable. 3.  Homeowners are better citizens. 4.  It’s safe to buy a house with a very low downpayment. 5.  Owning is always cheaper than renting. You’ll have to read the op-... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3015270 Fri, 20 Nov 2009 21:02:41 +0100 3015270 http://www.medworm.com/index.php?rid=2992654&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FSbYiyF-YLk4%2F Over at Downsizing Government, we focused on failures in the following departments and agencies this week: Export-Import Bank: Call it the “Boeing Bank” HUD: Federal Housing Administration woes continue and housing subsidies for the dead Transportation: High-speed rail lobbyists squabble over taxpayer loot Also, in addition to losing more money, Fannie Mae and Freddie Mac lose their inspector general. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2992654 Fri, 13 Nov 2009 20:28:19 +0100 2992654 http://www.medworm.com/index.php?rid=2989131&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FSPFVOqcc8Sg%2F The Wall Street Journal is reporting that Fannie Mae and Freddie Mac, which have already consumed $112 billion in taxpayer bailouts, may have additional losses if they can’t recoup claims from struggling private mortgage insurers. From the Journal: Fannie Mae has about $109.5 billion of mortgage-insurance coverage in force, which represents 4 percent of all single-family home loans it owns or guarantees. Freddie Mac had $63.4 billion in mortgage insurance and $12.2 billion in bond insurance. Private mortgage insurance is required for any home loan with less than a 20 percent down payment, and the policies typically cover 12 percent to 35 percent of losses in the event of a default, according to HSH Associates, a financial publisher. Mortgage insurers have been forced to pay up as loan de... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2989131 Fri, 13 Nov 2009 15:06:03 +0100 2989131 http://www.medworm.com/index.php?rid=2977273&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F8Zy8En-qHt4%2F On its front page today, the Washington Times reports that expanded powers for the Federal Reserve are being opposed by “odd allies.”  The Fed’s imperial over-reach for additional regulatory powers is being opposed by Democrats and Republicans, and liberals and conservatives alike.  As well it should be.  As Senator Shelby observed, “Anointing the Fed as the systemic-risk regulator will make what has proven to be a bad bank regulator even worse.” The regulation of financial services failed conspicuously to prevent the worst financial crisis since the Great Depression.  The Fed failed most conspicuously as it was charged with oversight of all the major banks, including notably Citigroup and Bank of America. Bank regulation now functions to insulate banks f... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2977273 Mon, 09 Nov 2009 17:28:21 +0100 2977273 http://www.medworm.com/index.php?rid=2967286&cid=t_307815_88_f&fid=35612&url=http%3A%2F%2Ftheknifeman.blogspot.com%2F2009%2F11%2Fsupergroup-vocalist.html Exams all finished. Now just3 weeks of anxious waiting.As for my supergroup, I think I want Freddie Mercury, and Janis Joplin. And maybe Elvis. Can't quite decide...Then again, what about Tom Jones.... (Source: The KnifeMan) The KnifeMan blogs http://www.medworm.com/rss/comments.php?id=2967286 Tue, 03 Nov 2009 16:57:00 +0100 2967286 http://www.medworm.com/index.php?rid=2943758&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FX1NXb5M8pik%2F Over at Think Progress, Matt Yglesias takes me to task for saying that the so-called public option in the House’s health care bill “would all but eliminate private insurance and force millions of Americans into a government-run system.” Yglesias apparently still buys into the myth that the public option is, well, an option. For people who receive health insurance through their employers, which is to say the vast majority of the Americans who currently have health insurance, the House bill would change very little. Or, rather, the biggest change would simply be the confidence that if, in the future, you cease to get health insurance from your employer (maybe you’ll lose your job or want to change jobs) that you’ll still be able to get health care. What’s more, of the minority of... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2943758 Fri, 30 Oct 2009 14:37:15 +0100 2943758 http://www.medworm.com/index.php?rid=2912163&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FyF0NSkZgGWE%2F Last night National Government Radio promoted a documentary on National Government TV about the financial crisis of 2008, which concludes that the problem was . . . not enough government. If the “Frontline” episode mentioned any of the ways that government created the crisis — cheap money from the central bank, tax laws that encourage debt over equity, government regulation that pressured lenders to issue mortgages to borrowers who wouldn’t be able to pay them back — NPR didn’t mention it. For information on those causes, take a look at this paper by Lawrence H. White or get the new book Financial Fiasco by Johan Norberg, which Amity Shlaes called “a masterwork in miniature.” Available in hardcover or immediately as an e-book. Or on Kindle! A... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2912163 Wed, 21 Oct 2009 13:25:19 +0100 2912163 http://www.medworm.com/index.php?rid=2855544&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIbmJSv49OxM%2F This past week witnessed continued debate in congressional committees over changes to our financial regulatory system.  Perhaps catching the most attention was Fed Chairman Ben Bernanke’s appearance before House Financial Services.  Sadly missing from all the noise this week was any discussion over reforming those entities at the center of the housing bubble and mortgage meltdown:  Fannie Mae and Freddie Mac. While many, including Bernanke, have identified the “global savings glut” as a prime force behind the historically low interest rates that drove the housing bubble, often missed in this analysis is the critical role played by Fannie and Freddie as channels of that savings glut.  After all, the Chinese Central Bank was not plowing its reserves into Countrywide sto... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2855544 Fri, 02 Oct 2009 16:08:38 +0100 2855544 http://www.medworm.com/index.php?rid=2823967&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FFuQ414OVrvQ%2F “Americans are more likely today than in the recent past to believe that government is taking on too much responsibility for solving the nation’s problems and is over-regulating business,” according to a new Gallup Poll. New Gallup data show that 57% of Americans say the government is trying to do too many things that should be left to businesses and individuals, and 45% say there is too much government regulation of business. Both reflect the highest such readings in more than a decade. Byron York of the Examiner notes: The last time the number of people who believe government is doing too much hit 57 percent was in October 1994, shortly before voters threw Democrats out of power in both the House and Senate. It continued to rise after that, hitting 60 percent in Decembe... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2823967 Tue, 22 Sep 2009 21:18:43 +0100 2823967 http://www.medworm.com/index.php?rid=2803878&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FezH7ncJ3cEM%2F Today the Center for American Progress rolled out its proposal that we add “public directors” to the boards of companies that have been bailed out by the government.  CAP scholar Emma Coleman Jordan argues that “public directors will provide a corrective to the boards of the financial institutions that helped cause the crisis.” One has to wonder whether Ms. Jordan has ever heard of Fannie Mae and Freddie Mac.  If she had, she might recall that a substantial number of the board members of Fannie and Freddie were so-called “public” members appointed by the President.  Perhaps she can ask CAP adjunct scholar and former Fannie Mae executive Ellen Seidman to review the history of those companies for her. Where’s the evidence that any of those Fannie... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2803878 Thu, 17 Sep 2009 17:45:44 +0100 2803878 http://www.medworm.com/index.php?rid=2793134&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FHQmw2pZGlFY%2F Today President Obama took his financial reform plan to the airwaves.  While there is no doubt our financial system is in need of financial reform, the President’s plan would make bailouts a permanent feature of the regulatory landscape.  Rather than ending “too big to fail” — the President wants us to believe that with additional discretion and power, the same Federal Reserve that missed the boat last time will save us next time. The truth is that the President’s plan will result in a small number of companies being viewed by debtholders as “too big to fail”.  These companies would see their funding costs decline, allowing them to gain market-share at the expense of their rivals, making these firms even larger.  Greater concentration in our fi... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2793134 Mon, 14 Sep 2009 16:29:55 +0100 2793134 http://www.medworm.com/index.php?rid=2765997&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FB493KuxXxbI%2F The housing boom and bust that occurred earlier in this decade resulted from efforts by Fannie Mae and Freddie Mac — the government sponsored enterprises with implicit backing from taxpayers — to extend mortgage credit to high-risk borrowers. This lending did not impose appropriate conditions on borrower income and assets, and it included loans with minimal down payments. We know how that turned out. Did U.S. policymakers learn their lessons from this debacle and stop subsidizing mortgage lending to risky borrowers? NO. Instead, the Federal Housing Authority lept into the breach: The FHA insures private lenders against defaults on certain home mortgages, an inducement to make such loans. Insurance from the New Deal-era agency has enabled lending to buyers who can’t make a big d... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2765997 Fri, 04 Sep 2009 14:23:40 +0100 2765997 http://www.medworm.com/index.php?rid=2674227&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FpFlmb-PJlf4%2F Historian Diane Ravitch drives me nuts. She has written numerous, terrific books chronicling the ills of government control of education, including the wrenching social conflict it has caused; the ejection of meaningful content from textbooks and tests it has required; and the dominance of educrats over parents and children it has enabled. She has been, essentially, the official historian of government-schooling’s failure. And yet, in a new blog interview with journalist John Merrow, she appears not to comprehend the most important lesson her copious works have to offer: that government education is doomed to fail. Why the huge disconnect between her historiography and willingness to act on its clear implications? Because, it appears, as much as she knows that government schooli... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2674227 Wed, 05 Aug 2009 19:59:08 +0100 2674227 http://www.medworm.com/index.php?rid=2621751&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fp8fk8Y8IffI%2F ABC News reports: “The total potential federal government support could reach up to $23.7 trillion,” says Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, in a new report obtained Monday by ABC News on the government’s efforts to fix the financial system. Yes, $23.7 trillion. “The potential financial commitment the American taxpayers could be responsible for is of a size and scope that isn’t even imaginable,” said Rep. Darrell Issa, R-Calif., ranking member on the House Oversight and Government Reform Committee. “If you spent a million dollars a day going back to the birth of Christ, that wouldn’t even come close to just $1 trillion — $23.7 trillion is a staggering figure.” Granted, Barofsky is n... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2621751 Mon, 20 Jul 2009 21:36:49 +0100 2621751 http://www.medworm.com/index.php?rid=2473204&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fj28OcieqtwE%2F Today Congressman Spencer Bachus, along with several of the Republican members of the House Financial Services Committee, offered a plan for reforming our financial system and ending future government bailouts of the financial sector At the heart of the financial crisis has been the Federal Reserve’s willingness to invoke its powers under Paragraph 13-3 of the Federal Reserve Act to bail out firms like Bear Stearns and AIG — all without a single vote from Congress or any form of public debate. Almost 10 months after the initial AIG bailout by the Fed, there is still no plan for resolving that firm, and no strategy for recovering the taxpayers investment. While some might pretend that the Fed puts no taxpayer funds at risk under the use its 13-3 powers, it is the American taxpayer who u... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2473204 Thu, 11 Jun 2009 19:41:03 +0100 2473204 http://www.medworm.com/index.php?rid=2405043&cid=t_307815_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FtZlSp42e6lw%2F Yes, I know.  It’s hard to believe.  Fannie Mae continues to lose money and, even more surprisingly, isn’t likely to ever pay taxpayers back for all of the billions that it already has squandered.  Rather, it says it will need more bail-out funds — probably another $110 billion this year alone. Reports the Washington Post: Fannie Mae reported yesterday that it lost $23.2 billion in the first three months of the year as mortgage defaults increasingly spread from risky loans to the far-larger portfolio of loans to borrowers who have been considered safe. The massive loss prompts a $19 billion investment from the government to keep the firm solvent, on top of a $15 billion investment of taxpayer money earlier this year. The sobering earnings report was a reminder of the f... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2405043 Tue, 12 May 2009 22:12:16 +0100 2405043 http://www.medworm.com/index.php?rid=2358867&cid=t_307815_140_f&fid=38154&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FPatientTimes%2F%7E3%2F6Urxpa95QpQ%2F A word of warning:  this post is more of an observation than a ‘lesson’;  a question rather than an answer.  I don’t want someone to waste their time reading and expecting a piece of life-changing advice… only to find more things to wonder about! I also need to be brief because I need to get to the office, although perhaps briefness is something appreciated by those who stumble across this site! I just finished an appointment with a young lady who is facing a number of challenges.  She is 22 and single, and she lives with her preschool-aged daughter in half of a duplex.  In the past month she had quite a run of bad luck.  Her slumlord hasn’t come through with the repairs he promised to make; she has an oven that doesn’t work, doors with broken dead... Patient Times blogs http://www.medworm.com/rss/comments.php?id=2358867 Wed, 22 Apr 2009 23:16:19 +0100 2358867 http://www.medworm.com/index.php?rid=1439504&cid=t_307815_87_f&fid=34595&url=http%3A%2F%2Fnhsblogdoc.blogspot.com%2F2008%2F05%2Fmotoring-offences-upside-of-dumbing.html Freddie FlintoffYou may think it is easy to prosecute someone for speeding. Anyone can do it. You may think it is easy to deliver a baby. Anyone can do that do. Sadly, "anyone" was recently delivering a baby at home, in Suffolk, and a young mother died. Total, gobstopping incompetence - but pay peanuts, get monkeys.Back to speeding. If you are going to prosecute someone for motoring offences you need professional skills. You need a lawyer. Nowadays, you don't get real lawyers. You get lawyer-lite from the CPS or, even worse, Dixon. We all loved George, but George did not pretend to be a lawyer. It's not like that anymore. No one knows their place.A man who knew his placeA cricketer has escaped from an allegation of driving much faster than the speed limit. His solicitor glories in the so... NHS Blog Doctor blogs http://www.medworm.com/rss/comments.php?id=1439504 Tue, 13 May 2008 22:18:00 +0100 1439504 http://www.medworm.com/index.php?rid=1034969&cid=t_307815_113_f&fid=36670&url=http%3A%2F%2Ffeeds.feedburner.com%2F%7Er%2Fmsdn%2Fhealthblog%2F%7E5%2F184363134%2FDownload.asp I'm writing this from Philadelphia where this evening I'll be presenting at the 2007 International Freddie Awards.  The awards ceremony honors the very best in health and medical media (television, film and video) from around the globe.  It is always a star-studded event and a chance to see many of my colleagues from the medical broadcasting and health reporting community.  From here, I travel to Las Vegas to keynote on Monday at the 11th Annual Healthcare Internet Conference at the Venetian Hotel. After attending the Freddies last year I wrote a piece on digital media and how personal computing has changed the landscape of television and radio.  Today, anyone can create and distribute programming thanks to the personal PC and the Internet.&nbsp... HealthBlog blogs http://www.medworm.com/rss/comments.php?id=1034969 Fri, 02 Nov 2007 16:47:00 +0100 1034969