Experience Stern | News & Events

Excerpt from The Huffington Post -- "Mortgage subsidies through federal agencies are the modern-day version of the Homestead Act. But unlike the land grants of the 19th century, government loan subsidies have proven to be a rather bad idea. They drive up prices and increase the size of the average house, at the same time that they encourage people with little savings and highly variable incomes to purchase homes and shoulder the risks of house price fluctuations. The result -- as we saw in the 'subprime crisis' -- was ruinous for the borrowers, the lenders and the economy as a whole."

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