The new Treasury Secretary nominee, Stephen Mnuchin (who has no doubt suffered since his crib as "Munchkin") wasted no time at all to announce the end of Fannie Mae and Freddie MAC (government-sponsored enterprises, the “GSEs”). Mnuchin asserted that the GSEs have been "displacing private lending in the mortgage market." The GSEs will be ”moved out of government control,” and “...we’ll make sure that when they’re restructured, they’re absolutely safe.” Donald Trump’s election and the single-party control of the White House and Congress means the end to a long period of gridlock and to a solid 16-year period of ineptitude and inaction by Treasury Secretaries. Previously impossible actions will happen, some quickly -- some good, and some not. The lurch out of gr...
- The Treasury Secretary nominee, Stephen Mnuchin, asserted that the GSEs have been "displacing private lending in the mortgage market" and said they'd be removed from government control.
- The risk to the economy -- and in this case specifically to housing -- will be the nature of the lurch out of gridlock.
- Once in a while, government can do things better than markets, which can result in anti-competition.
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