Fannie Mae, Freddie Mac, and the Future of Federal Housing Finance Policy: A Study of Regulatory Privilege | David Reiss | Cato Institute: Policy Analysis

Fannie Mae, Freddie Mac, and the Future of Federal Housing Finance Policy: A Study of Regulatory Privilege | David Reiss | Cato Institute: Policy Analysis.

When Congress finally passed Financial Regulatory Reform last June. I by in large  supported it, even though I didn’t think it went far enough. Like forcing Big Banks that own a huge percentage of the market, to break up. Because I believe in real capitalism not monopoly. As well as not have some time type of Insurance Fund for banks and other company’s that go under. That these company’s would have to pay into, instead of Tax Payers being forced to bail them out. Which is what we saw with TARP in 2008/09 and with the Detroit Autos in 2009. As well as not dealing with the future of Fannie Mae and Freddie Mac. Which combine represent a 4-6T$ monopoly. But it did have regulations like, forcing company’s that seem to be at risk of going under. To break up or reform. That represent a certain percentage of the Financial Market. As well as a new Financial Agency thats funded by these Big Banks. Which are things that I like.

The two major Financial Reforms I would’ve like to of seen. Would be an Insurance Fund set up that these Big Banks would have to either pay into it. Or purchase Bankruptcy Insurance on the Private Market. And if another Financial Crisis emerges, then they would collect from this fund. Instead of being bailed out by Tax Payers for the mistakes that they made. As well as dealing with the monopoly’s better known as Freddie and Fannie. Forcing them to break up into 80-100 different company’s. As well as privatizing them but leaving them as Non Profit company’s. That would compete against each other, bringing more competition to the Financial Market.

For Financial Reform to be serious, we have to have more competition in the Private Sector. Thats regulated properly by government. And have an Insurance System for these company’s to prevent future TARP’s from happening in the future. Instead of putting Tax Payers on the hook for bad decisions by bad management.

Advertisements

About Ederik Schneider

Blogger on a whole host of subjects.
This entry was posted in Fiscal Responsibility. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s