Setting Interest Rates At 4%?

Below is a great opinion article from The Wall Street Journal that talks about setting interest rates at 4% or 4.5%.  The problems are price-fixing, taxpayer cost, and a misunderstanding of housing trends. True, the government would not set the prices of the houses themselves. But by fixing the price of home financing, the government would be nationalizing one more branch of the housing market. The feds tried this recently with student loans, and the result is that the private market largely collapsed. After this all-too-predictable result, Congress did what comes naturally: It blamed lenders who withdrew from the market for being “greedy.” And it had the government — the taxpayer — become the main lender to students.”

http://online.wsj.com/article/SB123388493959055161.html?mod=todays_us_opinion