CEI - Today in the News: Fannie and Freddie, Internet Privacy, and Cap-and-Trade

Fannie and Freddie


Lawmakers are working on restructuring Fannie Mae and Freddie Mac to limit the government's future involvement in the mortgage market.


CEI Policy Analyst John Berlau argues that the government needs to break down Fannie and Freddie and completely withdraw support.


"Winding down Fannie and Freddie will not be easy, but it will not be the horrendous disaster many are painting. Interest rates would likely go up, but housing prices will almost certainly go down, meaning that housing would likely hit equilibrium for credit-worthy borrowers with modest incomes."



Internet Privacy


Lawmakers and pundits have recently drawn attention to the lack of personal privacy in the internet age.


According to CEI Policy Fellow Carolyn Homer, fears about dwindling privacy are overblown.


"Today, as in the past, rumors of privacy's death have been greatly exaggerated. Fifteenth-century intellectuals feared that Gutenberg would destroy privacy as they knew it; instead, his printing press sparked the Enlightenment. The 21st century's transformative information age is in its infancy. Let's not suffocate the Internet because peripheral privacy activists are spooked by cookies."





Betsy Moler, Exelon Corp.'s former Executive Vice President, argues that the GOP's opposition to cap-and-trade is self-contradictory, since cap-and-trade is a "market-based" solution that Republicans once advocated.


CEI Senior Fellow Marlo Lewis says that Moler fails to understand why the GOP is opposed to cap-and-trade.


"Just because 'market-based' approaches are more efficient, in principle, than command-and-control regulation does obligate Republicans to support Waxman-Markey or Kerry-Lieberman. Moler confuses ends and means. Only if Republicans want government to raise energy prices, make coal uneconomical as an electricity fuel, or, more broadly, restrict Americans’ access to carbon-based energy would they be inconsistent to oppose a 'market-based' strategy to accomplish those objectives."