The pandemic has pulled Uncle Sam deeper into the housing market again. This time he may become too deeply embedded to ever leave.
With the economy shut down, unemployment soaring, and no clear end in sight, policymakers have been leaning on two mortgage companies the government took control of during the last housing crisis, Fannie Mae and Freddie Mac. The companies buy and guarantee home loans and then package them to be sold in the bond market. And now they’re at the heart of the government’s efforts to rescue homebuyers, mortgage lenders and servicers, and some landlords.
Even critics of government’s involvement in housing have undergone a bit of a conversion. “The private market can’t save us,” says Anthony Sanders, a finance professor at George Mason University who describes himself as a libertarian. He was a steadfast advocate for paring down Fannie and Freddie. “The tides have changed dramatically. Now we realize without Fannie and Freddie, we’d be in a world of hurt, because who else is going to buy these mortgages?”
Bu hikaye Bloomberg Businessweek dergisinin May 25 - June 01, 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Bloomberg Businessweek dergisinin May 25 - June 01, 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers
