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Time to disband Fannie and Freddie.
Never should have been created because markets are perfect.
If you can't pay for a house with cash, you deserve to be homeless, exactly as the Founding Fathers believed.
Problem is that Patrick is NOT paying for someone else's mortgage risk. He is paying for the risk inherent in Scrooge Moneybag's investment in Jason's overleveraged shit shack. The bank will kick Jason to the curb and bail out Scrooge. The risk is not truly socialized as intended--with some exceptions, generally only the 2b2f are bailed out.
This lurking risk is great news for potential buyers.
http://money.cnn.com/2018/03/08/news/economy/housing-economics-nonbank-lenders-brookings/index.html?iid=EL