🚀 go-pugleaf

In a previous article tylerh@alumni.caltech.edu (Tyler R. Holcomb) writes:
<
>Note: for those interested in the "triple federal subsidy"
<of mortage interest deduction, capital gains rollover, and,
>most importantly, intermediate credit facilities (e.g. Fannie Mae),
<read _Supermoney_ by 'Adam Smith'.  After carefully
>explaining just how massive these subsidies are, he
<concluded "The government wants you to buy a house.
>GO BUY A HOUSE," correctly forecasting the 70's bull market
<in real estate.

On to a different thread, the effect of government subsidy in free market
is often over stated.  The effect of government subsidy in the housing
market is a temporary increase in the number of people able to afford a
house, which will in turn drive up the cost of buying a house.  The long
term result is that the number of people able to afford a house is not
significantly affected, but the the subsidy must be maintained to avoid
a crash.  In effect, we have, as we have many times in the past, borrowed
from the future generation for some quick fixes, and there is no way out
without introducing even more unfairness.