Will we recover, unbridle ourselves of debt, innovate, pay for our national security? Or, is China fated to become number one, leaving us to live in a Chinese world?

The best long-term solution for Fannie Mae and Freddie Mac is privatization: as private entities they will not create future losses for taxpayers, and a private system will encourage more innovation, efficiency, and competition, which should lead to lower mortgage rates.

The Committee believes the Treasury Department'sestablishment of conservatorship for the GSEs must be the beginning and not the end of the reform process. Liquidationoffers the most promising future for the enterprises; it allows taxpayers to benefit from whatever value remains in the companies, but minimizes the risk of continuing government involvement with their activities.

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Statement No. 251For Information Contact:Paul M. Horvitz713-780-3771Peter J. Wallison202-862-5864

The subprime mortgage crisis has brought to light several policy issues associated...

Testimony before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises on issues surrounding the Milberg Weiss indictment and H.R. 5491.

Testimony before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises regarding American ingenuity and global competitiveness in the 21st century.

For-profits may have incentives to cut corners in pursuit of profits, but this trait is the flip side of valuable characteristics: the inclination to grow rapidly, readily tap capital and talent, maximize cost effectiveness, and accommodate customer needs. Alongside nonprofit and public providers, for-profits have a crucial role to play in meeting America’s 21st century educational challenges.

Treasury Secretary Timothy Geithner has said that the administration wants to bring private capital back to the housing finance market. But without reopening Dodd-Frank and reigning in the Federal Housing Administrations (FHA), winding down government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac will not be enough to allow the private market to return