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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (17767)	2/24/2004 1:02:37 PM
From: MSI	Read Replies (1) \| Respond to of 306849

Greenspan was unclear about it. When asked if "most" or "all" the subsidy benefits went to homeowners, would it still be a good idea, he avoided the question. It looks like he's after the privatization for vague reasons. He says a portion of gov't subsidy accrues to homeowners and the other portion to shareholders of GSEs, along with some inefficiency. Then he says the inefficiency doesn't affect homeownership much. Then he says the slight interest rate effect of privatization has not much effect on home ownership rates, and that the GSE managers are doing a "very good job" of risk management. The vague warnings of problems out of the managers' control weren't distinguished from other problems out of control of a diversified group of privatized managers. Looks more political than economic. He's simply getting pressure to encourage Congress to privatize $4 trillion worth of business. A nice big chunk of business for Corporate-occupied Washington lobbyists to go after, like privatizing soc. sec., another $10 trillion.