By ROBERT J. SHILLER
In the aftermath of the subprime mortage crisis,our national commitment to homeownership is sure to be questioned as we consider what to do about Fannie Mae and Freddie Mac, the enterprises that are meant to increase the supply of money available for mortgages and are now under government conservatorship; the Federal Housing Administration which directly subsidizes homeownership; and the Federal Reserve’s quantitative easing program, which was intended to lower interest rates. For both political and economic reasons, any or all of these encouragements for homeownership — not to mention the mortgage interest deduction — could be sharply curtailed.
In today’s world, is it wise for the government to subsidize homeownership?
In answering it, we have to look at the big picture by considering all the presumed advantages of owning a home, including the encouragement of thrift that animated the founders of “Own Your Own Home Day.â€
Full article: http://www.nytimes.com/2013/07/14/business/owning-a-home-isnt-always-a-virtue.html
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