Issue Brief posted June 6, 2013 by John L. Ligon
Will FHA Require the Next Round of Housing Bailouts from the Taxpayer?
The conventional mortgage market has tightened lending standards in the past few years and, consequently, witnessed a decline in delinquency rates with fairly clear lines in credit quality of borrowers and reasonable requirements on borrower collateral (generally a 20 percent down payment to avoid private mortgage insurance) for loan approval.
The Federal Housing…
Testimony posted March 11, 2013 by John L. Ligon
How Government Housing Policy Led to the Financial Crisis
Testimony before the
Committee on Financial Services, Subcommittee on Capital Markets and Government Sponsored Enterprises
United States House of Representatives
March 6, 2013
1. Introduction
My name is John Ligon. I am a Policy Analyst in the Center for Data Analysis at the Heritage Foundation. The views I express in this testimony are my own and should not…
Issue Brief posted January 11, 2013 by John L. Ligon, David B. Muhlhausen, Ph.D.
The Role of GSEs in the Housing Market
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the major housing government-sponsored enterprises (GSEs), hold dominant positions in the U.S. mortgage market. They have likely passed a mortgage interest rate subsidy of 25–50 basis points to homebuyers through their interventions in the housing market,…
Backgrounder posted December 14, 2012 by William W. Beach, John L. Ligon, Guinevere Nell
The Economic and Fiscal Effects of the Obama Tax Plan
Abstract: On January 1, 2013, the Bush tax cuts will expire and other new taxes that congressional leaders have recognized would damage the economy will take effect. President Barack Obama’s proposal to increase taxes on only “high-income earners” would also be economically destructive, reducing economic output by an average of $196 billion per year over 2013–2022…
Backgrounder posted September 18, 2012 by Salim Furth, Ph.D., John L. Ligon
How Contagious Is Europe’s Economic Crisis?
Abstract: Europe’s economic problems are already affecting the U.S. economy. An expanding European crisis could affect the U.S. through the financial sector, reduced demand for U.S. exports, disruption of global supply chains, and political disruption in Europe. The U.S. can best help Europe by pursuing sound economic policies at home, starting with pulling back from the…
Backgrounder posted March 2, 2011 by Nicolas Loris, John L. Ligon
What To Do About High Oil Prices
Abstract: Rising oil and gas prices are a concern to consumers, Congress, and the Obama Administration. The impact of higher oil prices goes far beyond the gas pump and affects the U.S. economy, as a new Heritage Foundation analysis shows. In addition to unrest in oil-producing countries and increased demand around the world, U.S. policies are contributing to higher fuel…
WebMemo posted December 2, 2010 by Karen Campbell, Ph.D., John L. Ligon
The Economic Impact of a 25 Percent Corporate Income Tax Rate
One way to spur private sector investment in the U.S. and get it into the hands of entrepreneurs would be to reduce the federal statutory corporate income tax rate, which is currently 35 percent.
The Heritage Foundation’s Center for Data Analysis (CDA) conducted a dynamic simulation of a reduction of the corporate income tax rate to 25 percent, comparing it to a baseline…
WebMemo posted September 20, 2010 by William W. Beach, John L. Ligon
Obama Tax Hikes: Economic Harm to All Americans
The end of the August recess brought with it the beginning of a historic tax debate. Congress soon will decide whether to extend tax relief passed in 2001 and 2003 to all income-earning groups or to only some. In the course of making that decision, Congress may set the fate of the U.S. economy for the next decade.
Politically speaking, President Obama and the…