How Freddie Mac's Refinancing Stonewalling Hurt The Recovery

A blog about business and economics.
Oct. 25 2012 3:57 PM

How Freddie Mac's Refinancing Stonewalling Hurt The Recovery

Jesse Eisenger has a great piece about how Freddie Mac resisted efforts to boost mortgage refinancing. You should really read it, but I thought I'd highlight this piece:

In closed door meetings, two Republican-leaning board members and at least one executive resisted a mass refi policy for an additional reason, according to the interviews: They regarded it as a backdoor economic stimulus.

That's more or less accurate. Larger-scale and more vigorous implementation of mortgage refinancing through federally owned Fannie Mae and Freddie Mac would have been economic stimulus (where exactly the "backdoor" is we'll leave as subjective) and that's precisely why it's so terrible they go through with it.

And that in a nutshell is how our screwy politics have been hurting the economy for years.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

History

Slate Plus Early Read: The Self-Made Man

The story of America’s most pliable, pernicious, irrepressible myth.

Rehtaeh Parsons Was the Most Famous Victim in Canada. Now, Journalists Can’t Even Say Her Name.

Mitt Romney May Be Weighing a 2016 Run. That Would Be a Big Mistake.

Amazing Photos From Hong Kong’s Umbrella Revolution

Transparent Is the Fall’s Only Great New Show

The XX Factor

Rehtaeh Parsons Was the Most Famous Victim in Canada

Now, journalists can't even say her name.

Doublex

Lena Dunham, the Book

More shtick than honesty in Not That Kind of Girl.

What a Juicy New Book About Diane Sawyer and Katie Couric Fails to Tell Us About the TV News Business

Does Your Child Have Sluggish Cognitive Tempo? Or Is That Just a Disorder Made Up to Scare You?

  News & Politics
Foreigners
Sept. 29 2014 10:00 PM “Everything Must Change in Italy” An interview with Italian Prime Minster Matteo Renzi.
  Business
Moneybox
Sept. 29 2014 7:01 PM We May Never Know If Larry Ellison Flew a Fighter Jet Under the Golden Gate Bridge
  Life
Dear Prudence
Sept. 29 2014 3:10 PM The Lonely Teetotaler Prudie counsels a letter writer who doesn’t drink alcohol—and is constantly harassed by others for it.
  Double X
The XX Factor
Sept. 29 2014 1:52 PM Do Not Fear California’s New Affirmative Consent Law
  Slate Plus
Slate Fare
Sept. 29 2014 8:45 AM Slate Isn’t Too Liberal, but … What readers said about the magazine’s bias and balance.
  Arts
Brow Beat
Sept. 29 2014 9:06 PM Paul Thomas Anderson’s Inherent Vice Looks Like a Comic Masterpiece
  Technology
Future Tense
Sept. 29 2014 11:56 PM Innovation Starvation, the Next Generation Humankind has lots of great ideas for the future. We need people to carry them out.
  Health & Science
Bad Astronomy
Sept. 29 2014 12:01 PM This Is Your MOM’s Mars
  Sports
Sports Nut
Sept. 28 2014 8:30 PM NFL Players Die Young. Or Maybe They Live Long Lives. Why it’s so hard to pin down the effects of football on players’ lives.