On Wednesday, people close to the discussions said that the Treasury had been talking with Fannie Mae and Freddie Mac about ways to drive down mortgage rates to as low as 4.5 percent. That rate is about a percentage point lower than the going rates for such loans.Am I missing something? Isn't this exactly what caused the whole housing mess?
As much as the Austrians among us may dislike Milton Friedman, he does seem to have an appropriate zinger for every action the government takes. Quote of the day: "The government solution to a problem is usually as bad as the problem."