Bessent outlines a vision for creating public assets from Fannie Mae and Freddie Mac rather than accumulating debt. He highlights a collaborative government approach to determine potential uses for various assets to improve housing affordability. Issues in the housing market stem from outdated building practices and fragmented local regulations. He suggests that innovation such as prefabrication could help address these challenges. Positive reactions from financial executives underline the significance and potential of this approach, especially concerning emerging strategies in housing and public asset management.
He wants to create assets for the American people, not just debt, Bessent said. The government has a big stake in Fannie Mae and Freddie Mac.
Bessent emphasized that determining what would go into a sovereign wealth fund is a whole government effort, with every department looking for mobilizable assets.
He pointed out the absence of technological change in house building for nearly 60 years and raised concerns about varying local building codes.
Bessent proposed prefabrication as a potential solution for housing issues, but acknowledged the significant obstacles posed by different local regulations.
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