Robert Van Order, Oliver T. Carr professor of real estate, was featured March 8 in The New York Times. The article, “Privatization Won’t Reduce Risk,” assesses the continuing need for government guarantees in the mortgage market. ”That is the paradox of guarantees,” Van Order said. ”They produce incentives to take on too much risk, as they did with Fannie and Freddie after 2004 and with the savings and loans in the 1980s, but they also limit systemic risk and panic. It’s hard to have one without the other.”
Posted by gwsb on March 11, 2011 | Filed under: Getting Ink.