GSEs

Let's not forget that unprecedented government intervention is the only thing keeping the the housing and mortgage markets afloat. This level of support is so massive that many are wondering what will happen when the government finally pulls the plug.

A year after the global financial and credit markets melted down, the U.S. housing market is in a good-news, bad-news equilibrium. The good news: prices in many markets have fallen to pre-bubble valuations, home values nationally have stabilized, sales are rising, mortgage rates are low and loans...