In less than twenty-five years, government “affordable housing” and other housing policies have turned a healthy market into a financial ruin. Until Fannie and Freddie’s market dominance and the government’s role in the housing finance system are substantially reduced or eliminated, the United States will continue to have an inferior and unstable housing market.

Martin Neil Baily and Douglas J. Elliott's narrative--that a decline in risk aversion was the ultimate cause of the financial crisis--accounts for much of the risk taking that was observed in the period leading up to the crisis, but in the end it is no more than an interesting theory.

In the Shadow Committee's view, the Federal Reserve Board is not an appropriate regulator for Fannie Maeand Freddie Mac.

Steps should be taken to increase competition in the rating industry, which would increase customer choice, price competition, innovation, and the analysis available to investors.