Monthly Archives: September 2016

The Economist Letter to Editor

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C.A.R. President Pat "Ziggy" Zicarelli recently submitted a Letter to the Editor of The Economist to rebut an article arguing that the U.S. hasn’t done enough to reform Fannie Mae and Freddie Mac and that the GSEs should play by the same rules as banks.

Zicarelli writes, "You argued that America has in effect nationalised its housing market ("Comradely capitalism," August 20). But the government has been supporting home financing and incentives for the past 80 years, whether through the mortgage-interest deduction or programmes that ensure affordable mortgage capital. Washington’s inability to press forward with reform has caused uncertainty and restricted credit for homebuyers. People are confident that if they qualify for a mortgage a bank will lend them the money. The Federal Housing Association, Fannie Mae, Freddie Mac and other programmes provided this stability. They took on the credit risk of mortgages so long as Wall Street took on the interest-rate risk. This system must be protected.

Read the full letter.

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