>You mean government charters for e.g. Fannie Mae that were established in part to combat behavior like redlining
US government used $200 billion of taxpayers money to revive Fannie Mae and Freddie Mac.
Those money will lower the cost of borrowing and thus push the prices up. A new crisis will come, people will lose their houses, Fannie Mae will lose the tax payers money. The government will give Fannie Mae and Freddie Mac $400 billion this time, thinking that $200 billion was clearly not enough.
The question remains, what policy was the above commenter refering to if not those that combat redlining?
Fannie/Freddie were captured and should never have bought NINA (no-income-no-asset) loans. If they had died out as a natural result of competition that would have been fine. But they were misled into a disaster. Allowing them to crash in 2008 would have been a bigger disaster. They no longer give out such risky loans. Now the sharks have moved on to other scams.
US government used $200 billion of taxpayers money to revive Fannie Mae and Freddie Mac.
Those money will lower the cost of borrowing and thus push the prices up. A new crisis will come, people will lose their houses, Fannie Mae will lose the tax payers money. The government will give Fannie Mae and Freddie Mac $400 billion this time, thinking that $200 billion was clearly not enough.