Gruen on AussieMac

In today’s Age, Nicholas Gruen does the seemingly impossible and writes about the mortgage industry without mentioning any mergers …

The “Aussie Mac” proposal of Christopher Joye and Joshua Gans involves extending this government function in the way that Fannie Mae has in the US since 1938, and the Canada Mortgage and Housing Corporation has since it first helped returned soldiers into homes in 1948. “Aussie Mac” would involve the Government doing what the RBA is now doing for banks — effectively guaranteeing high-quality mortgages — but on a larger scale and with competitive neutrality.

2 thoughts on “Gruen on AussieMac”

  1. Great news, josh. So we can look forward to a US style socialist model in housing with all the distortions it would offer. Gee why didn’t we think of that sooner.


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