> I believe that the government should become the monopolist for arranging
> home loans for owner-occupied vanilla mortgages up to a certain dollar
> amount; everything else should be regulated in the same was as
> 'sophisticated investor' products. They can securitize the mortgages as
> Freddie and Fannie have been doing for decades, pay less-than-market
> rates in exchange for the security involved with guaranteeing them and
> use the spread to pay for operations, save for a rainy day, and absorb
> losses in down markets. Keep the little guy out of it. This was
> *supposed* to be what the GSEs were going to do, but in the drive to
> make them go public, have shareholders, and act more like "real" banks,
> they got caught up in the same loop.
>
> There has to be an *alternative* if only for risk management reasons.
Yes. The home mortgage market should not be a fucking casino.
Miles