In Bootleggers & Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics, economists Bruce Yandle and Adam Smith explain how money and morality are often combined in politics to produce arbitrary regulations benefiting cronies, while constraining productive economic activities by the general public.
Featuring David Reiss, Professor, Brooklyn Law School; Jay Brinkmann, Chief Economist, Mortgage Bankers Association; and David Crowe, Chief Economist, National Association of Home Builders. Moderated by Mark A. Calabria, Director, Financial Regulation Studies, Cato Institute.
Part of the federal response to the bursting of the housing bubble and resulting financial crisis was the federal rescue of the government-sponsored housing-finance enterprises, Fannie Mae and Freddie Mac. Given both the enormous cost of bailing out Fannie Mae and Freddie Mac, which could run to over $200 billion, along with the central role they played in creating the housing bubble, it is imperative that the debate over the costs and benefits of their activities begins. The panelists will review the history and current regulatory structure of Fannie Mae and Freddie Mac and offer proposals for reform.