The Case Against 30-Year Mortgages

I really do not understand the arguments of this article (or the libertarians in the comments complaining about it). It is so vague it offers little benefit to the discussion. The article makes it seem like the government pays a direct subsidy for mortgages. The GSAs do not do that; it insures the 30 year loans to provide market stability and makes money with guaranty fees. Just FDIC and NCUA insurance on private deposits-it is self funding and provides a positive to the market-stability. Same for FHA. This is exactly what the government should do. Private actors otherwise would have to find their own insurance and cyclical changes in the market would likely to higher fees to manage it than what the government is offering.

Nor does the article talk about the direct subsidies because it is very unpopular and the paper may lose readers. Like the mortgage interest deduction or VA loans.

Also, the paper picks out 30 year mortgage loans but leaves out other government incentives; like Trump's recent 20% tax deduction on non-owner operated business income... which really can only be claimed by a REIT as far as I know?

I specifically point out REITs as REITs led to their own share of property speculation.

The government benefits from these mortgages as it helps it develop underdeveloped regions in the nation-allowing them to reach that critical mass to support modern infrastructure and grows the middle class through home ownership. Your views on a community change when you have a decade of your wages invested in a part of that community.

My speculation is some think tank paid from the wealthy is paying for articles to find ways to raise revenue to keep the Trump tax cuts for the wealthy.