Essays in Fragility: Shadow Banking, Housing Inventory and Liabilities | ZeroHedge

The Federal government has socialized the mortgage industry, guaranteeing over 90% of all mortgages originated

What business has the US central government ever had in the mortgage business?? Now that they have essentially central planned the US housing market from Washington over the past 70 years, they have gotten stuck in guaranteeing the mortgage business since they have squeezed out all other private financing businesses by offering subsidized lower rates through government entities there are few private businesses to take up the slack. And as long as the central planning authority in Washington continues to intervene, there will no private private businesses that will risk to enter since they could be arbitrarily be put of business by the government through legislation or uneconomic lending.

The American government is essentially in control of housing and healthcare as well plenty of other businesses. It is a nation that is in the grips of a command and control economic authoritarianism not much unlike those that we saw in Marxist nations in the 20th century.

Essays in Fragility: Shadow Banking, Housing Inventory and Liabilities | ZeroHedge