Unbiased Analysis of Today's Healthcare Issues
The New York Times has an revealing article on Henry Cisneros. Mr. Cisneros was the U.S. Secretary of Housing and Urban Development (HUD) under President Clinton. In an attempt to expand home ownership rates, especially among low-income households, Mr. Cisneros loosened mortgage restrictions. ” Families no longer had to prove they had five years of stable income; three…
President Bush’s speech tonight urged Americans to side with the Bush-Bernanke-Paulson worldview that a bailout is the only option. Is it the only option? Luigi Zingales believes Henry Paulson’s decision to bail out Wall Street is a mistake. Most economists agree that the government won’t get a “deal” when negotiating the price of risky assets. “In…
In an attempt to stabilize the economy, the U.S. government has taken some significant actions. Let’s recount. The government has taken over Fannie Mae and Freddie Mac. Combined assets: $5 trillion. The government has “rescued” Bear Stearns by backstopping questionable assets valued at $29 billion. The government has given a loan to AIG for $85…
California has been one of the states that have been hardest hit by the “housing crisis.” According to the May 2008 Case/Shiller Index, home prices in San Diego and Los Angeles Counties have fallen 23% and 25% respectively over the past year. Foreclosures are rising and many houses are now left empty. The Economist reports…