The Political Economy of RMBS Intervention

I have an op-ed in today’s Age on the politics behind the government’s intervention in the market for residential mortgage-backed securities.

It was pleasing to see the Australian Financial Review take a strong editorial stance against the intervention (‘Swan Banks on a Very Bad Idea,’ AFR, 29 September 2008, p. 62). The AFR attributed the very transparent politics behind the intervention ‘to the Hollowmen school of policymaking.’