Subsidized housing continues

Hungarian PM Viktor Orban is pushing through legislation to save consumers with Swiss mortgages from the unfair risks of currency exchange. This seems totally fair. After all, who could have predicted that over the course of a 20-30 year loan, the exchange rate might actually change? Not everyone is Nouriel Roubini.

As we all know, governments are put in place to bail out banks and consumers, and to think up new subsidies that create shallow markets and dangerous macroeconomic imbalances (see Fannie Mae and Freddie Mac). If they raise taxes so that they can afford to pay for those bailouts, they should be voted out of office at the nearest opportunity. This is the essence of democracy.


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