Thursday, August 19, 2010

A Harvard Economist on Treasury Secretary Geithner's View that the Federal Government Should Guarantee Mortgages

Jeffrey Miron writes:

These are the kinds of remarks that make me want to tear my hair out: why should government intervene in mortgage markets in any way, shape, or form?

These interventions are just a backdoor way of redistributing income. But even if one believes in such redistribution, distorting mortgage markets, and generating all the moral hazard caused by this approach, is insane.

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