U.S Housing Giants Continue Losses

Fannie Mae and Freddie Mac are known to be “too big to fail”….at least that’s what the U.S had said up until the 2008 financial crisis.

In 1968 Fannie Mae and Freddie Mac had become a government-sponsored enterprise, a term insinuating that the government would always be there to bail them out if needed.

In 2008, the government was there to do just that.

With extreme lending of subprime mortgages, the economy quickly began to fail. Individuals were able to get mortgages they were unable to repay, something that would have been easily foreseeable, had the lenders set stricter requirements.

In this time, Fannie Mae and Freddie Mac had borrowed over $187 billion. And now, finally, they have repaid to the full amount and more…leaving the Trump administration to decide what to do next.

With reporting of a fourth-quarter net loss, it is obvious they have yet to recover to pre-crisis standards, and neither is it surprising that they are looking for taxpayer help with the new tax bill that has been passed by the trump administration.

This crisis begs …

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The importance of Land or Site Value Taxation, Fred Harrison, Karl Deeter and Stephen Reed

Land Value Tax (part1)- Fred Harrison, Karl Deeter and Stephen Reed from Irish Mortgage Brokers on Vimeo.

This is a talk that was given at the School of Philosophy and Economic Science on Wednesday the 27th of October 2010. It covers the reasons for Land or Site Value Taxation being an important aspect of any normal and functioning economy, Fred Harrison gives the economic background, Karl Deeter discusses some of the general societal issues and Stephen Reed relates to his practical experience as a Mayor who used it to regenerate his City.

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A phone call with Bob Frank, author of ‘The Economic Naturalist’

One of my favourite things to do is to talk to the people who write the books I love, often they are hard to reach, others are surprisingly easy, some of them are hard to talk to, others are some of the nicest folks you could hope to have a conversation with, Bob Frank is very much the former and the latter, it took a while to reach him but it was worth waiting for, he has the quality I like best (and I mentioned it already in the review I did on his book ‘The Economic Naturalist’) – namely the ability to talk about complex ideas in plain language.

I called Bob at his house in Ithaca and below are the contents of some of that conversation.

KD: Bob, you have said before that you feel economics has gotten too numerical, that taking that direction can sometimes provide absolute ‘truths’ that simply are not what they seem, so where does the art come into it? Where …

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