If there's a severe recession, the automatic stabilizers will come into effect, and we will still try to reduce the structural deficit, but we will not try to keep cutting the budget so that we keep worsening a severe recession. Franklin Raines automaticbudgetcut share on social
The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid. Franklin Raines additionalautomaticcoverage Change image and share on social
And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms. Franklin Raines boomfanniehigh Change image and share on social
Well, I think the best form would be to put money directly in the pockets of consumers. Franklin Raines consumerdirectlyform Change image and share on social
And so the danger for the housing industry is if we see interest rates rise. Franklin Raines dangerhouseindustry Change image and share on social
That is - the reason for that is that home prices are only going to go up. Now, they've never gone down nationwide in our - since we've been keeping track of this. Franklin Raines havehomekeep Change image and share on social
Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers. Franklin Raines boomconsumerkick share on social
They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up. Franklin Raines averagebasebelieve share on social
I think if you go beyond a year - if this continues into the system in the out years, I think there is a risk and that - that we could have a negative reaction in the bond market and that will offset the good that was attempted to be done. Franklin Raines attemptbondcontinue share on social