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we have a policy – make mortgage affordable. how are we going to this?
there are agencies that issue mortgage guarantees and buy mortgage papers. and this and that puts pressure on the cost of servicing mortgage debt, ie. reduces rates, making mortgages more affordable.
in the economy, something is rarely free. besides the built-in balancing idea, there is a banal truth about the absence of free lunches. eventually, policies aimed at increasing the availability of mortgages are a type of subsidy. by definition, granting a subsidy – loss of money. question of the future? what part of the losses from the mortgage crisis (within the industry) is the result of subsidies, and how much is the result of errors in management and organization.
subsidy – this is neither good nor bad. depends on the circumstances. I will not dare to assume the powers of a politician and talk about social Darwinism or active state liberalism. politics, this is a personal problem of politicians, and the psychological problem of those who are interested and sympathetic)
but the most unpleasant thing in this whole story, that the effect of the subsidy was seen as a positive effect of financial innovation and blah blah blah (who also undoubtedly had revenge to be, question in % contribution to the process). in the end, we got such a beautiful boom-bass cycle. rather, the transition from boom to bast turned out to be karsi.
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on the difference between the liquidity crisis of mortgage instruments in the United States from that, what has been and will be in Ukraine.
Henk Paulson quotes in his book (Phil Swagel):
too many people ended up in the wrong houses, not in the wrong mortgage (a hint of that, what was originally bought, which was not affordable due to rising prices, which would allow over time to restructure a loan or sell a house with a broth).
so here's the thing. but in Ukraine it is quite the opposite. too many people ended up in the wrong mortgage and in very nasty apartments (after all, not even houses)).
the housing problem in a post-Soviet country is solved in one way – creating an adequate financial market. dot.
