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Harvard economist Ed Glaeser is opposed:Against modest benefits, the proposed subsidy carries enormous costs. Subsidizing interest rates appealed to big-government interventionists because the expense is kept off federal balance sheets, at least for a while.. But for those occasional readers who might be stopping by, let me reiterate what I would do right now if I were the fiscal king. This latter provision is one advantage the federal government has over private lenders. I think the government is way too deep in the mortgage market already. But I wouldn't recommend it. The conforming (government guaranteed) mortgage market is the one thing that's working reasonably well.) Even here, though, there are better uses for the Fed's attentions. For the next two years, I would let each state governor have the authority to divert a portion of the payroll tax cut in his or her state and take the funds instead as state aid. The true costs of Fannie and Freddie were long shrouded, despite the efforts of some Republican senators.Some traditional Keynesians would object that government spending has a larger multiplier than tax cuts."I'm sure it has something to do with the economy,"
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