Winding down Fannie and Freddie

From the Daily Herald:

Speaking Tuesday in Arizona, President Obama endorsed the bipartisan efforts of [Senator Bob Corker (R-TN) and Senator Mark Warner (D-VA)] to wind down Fannie Mae and Freddie Mac as a first step in making certain that the nation does not suffer again through a housing finance crisis.

“For too long, these companies were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag,” Obama said in Phoenix. “The good news is that there’s a bipartisan group of Senators working to end Fannie and Freddie as we know them. I support these kinds of efforts.”

Let me explain why I also endorse these recommendations.

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Counterproductive Tendencies in Wisconsin Policy Debates

Reader John (sometimes Jack), who disapproves of my posts on Wisconsin, politely asks:

Dr Chinn,
Would you be willing to flesh out your background so as to better understand your positions in your research and blog postings?
Where were you born?
Where were your parents born?
Do your parents espouse your same political leanings?
Do you intend to remain in Wisconsin after you retire?
If not, where do you intend to move to?

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Econbrowser recession indicator index up to 30.5%

The BEA released today its comprehensive national account revisions, according to which real GDP grew at a 1.7% annual rate in 2013:Q2. Although this was above the 1.1% rate that many analysts were expecting, the new estimates also revise down the growth rates that were previously reported for 2012:Q4 and 2013:Q1, with the growth rate over these quarters now estimated to have been 0.1% and 1.1%, respectively, down from the 0.4% and 1.8% figures that had been reported last month.

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