In socialist if not outright Communist countries the housing industry is run by the government, There is no free enterprising or market competition by companies to help bring this under control. Instead it is up to the all wise and benevolent government that will save the day.
What other industry in American History has this happened to too and has this benefited America before. Or did it make it worse? Is the acquisition today of taking control of mortgage giants Fannie Mae and Freddie Mac a form of socialism?
No this is not socialism. Freddie Mac and Fannie Mae do not interrupt competition of banks and mortgage companies. They do not lend directly to consumers. They buy mortgages on the secondary market because they get lower interest rates from the government. While this does make home loans more affordable since they are government backed, it is not necessarily socialism. Interesting question though.Is the acquisition today of taking control of mortgage giants Fannie Mae and Freddie Mac a form of socialism?
This is a loaded question.
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