Comments on: Will They FUBAR Mortgage Finance, Too? http://www.arnoldkling.com/blog/will-they-fubar-mortgage-finance-too/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 00:12:22 +0000 hourly 1 https://wordpress.org/?v=4.0.32 By: Arnold Kling http://www.arnoldkling.com/blog/will-they-fubar-mortgage-finance-too/#comment-241530 Fri, 15 Nov 2013 19:11:18 +0000 http://www.arnoldkling.com/blog/?p=2256#comment-241530 I do not want the government to guarantee any mortgages, but the rationale for guaranteeing ARMs is particularly weak. Banks do not need to securitize ARMs, because they carry little interest rate risk.

]]> By: R Richard Schweitzer http://www.arnoldkling.com/blog/will-they-fubar-mortgage-finance-too/#comment-241428 Fri, 15 Nov 2013 18:31:36 +0000 http://www.arnoldkling.com/blog/?p=2256#comment-241428 Do we sense that the greater issue here maybe:

Why should there be guarantees?

Are we dealing with risks and rewards? If so, and wrists are transferred to a governmental body or agency, what are the rewards for that risk?

Are the kinds of guarantees envisioned “artificial,” “constructed” and therefore specific interest-oriented incentives, without political or economic justification?

]]> By: Jon http://www.arnoldkling.com/blog/will-they-fubar-mortgage-finance-too/#comment-241039 Fri, 15 Nov 2013 15:03:21 +0000 http://www.arnoldkling.com/blog/?p=2256#comment-241039 What is your issue with ARMs?

]]> By: Effem http://www.arnoldkling.com/blog/will-they-fubar-mortgage-finance-too/#comment-241032 Fri, 15 Nov 2013 14:59:07 +0000 http://www.arnoldkling.com/blog/?p=2256#comment-241032 Perhaps a limit on the property value that can be guaranteed (no mortgages over $1m for example). This may resonate with the left and would help limit the size of the overall guarantee.

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