The Lede: With Rodman Stunt, American Reality TV and North Korean Propaganda Fuse

Elements of American show business and North Korean propaganda briefly fused on Friday, when the former basketball star Dennis Rodman told reporters in Pyongyang that North Koreans “love” their new leader, Kim Jong-un. “And guess what?” the athlete turned reality TV star added, “I love him — the guy’s awesome.”

An Associated Press video report on the end of Dennis Rodman’s visit to North Korea.

Speaking with the regional knowledge of a man who seemed to believe less than 48 hours ago that the upscale Seoul neighborhood featured in the global pop hit “Gangnam Style” was not in South Korea but somewhere in the impoverished North, Mr. Rodman parted with these words of praise for the heir to the Kim dynasty: “Guess what? His grandfather and his father were great leaders.”

Unsurprisingly, the former Chicago Bull’s visit, along with three current Harlem Globetrotters and a crew from “Vice,” the HBO “news magazine series” that arranged the trip, was extensively covered on North Korean state television, which is no more averse to reporting on staged events as news than the producers of the American reality television shows Mr. Rodman now gets paid to spice up.

North Korean state television footage of Dennis Rodman and his traveling companions arriving in Pyongyang this week.

Footage of the party’s arrival in Pyongyang was broadcast on Wednesday, and Mr. Kim and Mr. Rodman’s watching an exhibition game together, before adjourning to the leader’s palace for sushi, was a featured news item on Thursday.

A news report from North Korean state television on Kim Jong-un and Dennis Rodman watching a basketball game together.

In newsrooms not owned and run by the North Korean government, though, there has been some debate about whether any of these stage-managed events could fairly be described as news.

According to the producers of “Vice,” their new television program — inspired by the “thinking man’s lad magazine” of the same name — promises to be “an honest approach to documentary journalism.” But you don’t have to be Werner Heisenberg to wonder if the fact that they orchestrated this “basketball diplomacy mission” so they could film it raises questions about whether they were observing and documenting life in North Korea as it is or bringing a new form of reality television to the isolated nation.

As readers who watched the observational documentary “Page One: A Year Inside the New York Times” might recall, the founder of Vice magazine who led its expansion into filmmaking, Shane Smith — who is featured in a promotion for the new series — explained to my colleague David Carr in 2010 that his approach was perhaps more like a form of extreme tourism than journalism. “I’m not a journalist,” he said during a particularly salty exchange. “I’m not there to report.”

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Gadgetwise Blog: How to Beat Some Facebook Scammers

You’ve probably seen those wildly popular Facebook postings that entice you to share something — like a photo of a bear sneaking up on a man — with the instructions, “Press Like and type the number 1 and see what happens.” These posts often list hundreds of thousands of responses.

If you’ve tried it, here’s what you saw happen: nothing. Behind the scenes something is happening, though. With each click, a scammer gets a little closer to cashing in.

The most thorough explanation I’ve seen of how this deception works comes from Daylan Pearce, whose job title is Search Lead at Next Digital, described as Australia’s largest independent digital agency, in Melbourne.

Somewhat simplified, here’s how it works. There is a thriving business in selling Facebook pages. The idea is that a page builds an audience, then essentially sells that audience to someone else. It’s a practice Facebook opposes, but has limited control over.

If a company can buy that audience, its “edge rank” will increase. Edge rank — a term people like Mr. Pearce use, but which Facebook doesn’t officially acknowledge — measures how often someone’s posts show up in other people’s news feeds. “So,” Mr. Pearce said, “a page that has 50,000 likes will have greater exposure on people’s news feeds than a page with only 10,000.”

Edge rank is based on several factors, chief among them affinity, weight and decay, Mr. Pearce said. Affinity is largely based on the number of likes. Weight is based on what accompanies those likes. “A ‘like’ isn’t worth as much as a comment and a comment isn’t worth as much as a ‘share,’” he said.

Decay relates to the age of the post. More views, likes and shares over more time increases edge rank.

Facebook did not quarrel with the basics of Mr. Pearce’s explanation, but said it’s more complicated.

These scam posts are designed to do three things. Get you to like, comment and share the post. It’s a recipe to make it go viral, which takes care of decay.

To hook you, the posts make an intriguing promise, or ask you to support a worthy cause – “like this and share it if you know of someone who has suffered from cancer.”

While you can’t stop people from such postings, you can keep them off your page and reduce the potential profit. You lower their edge rank when you report or at least hide the post.

To do that, hold your cursor over the post and an arrow should appear in the upper right corner. Click it and a drop-down menu offers you the option of hiding or reporting the post.

The more often you report or hide these kinds of posts, the less often they will show up in your news feed.

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Well: A Rainbow of Root Vegetables

This week’s Recipes for Health is as much a treat for the eyes as the palate. Colorful root vegetables from bright orange carrots and red scallions to purple and yellow potatoes and pale green leeks will add color and flavor to your table.

Since root vegetables and tubers keep well and can be cooked up into something delicious even after they have begun to go limp in the refrigerator, this week’s Recipes for Health should be useful. Root vegetables, tubers (potatoes and sweet potatoes, which are called yams by most vendors – I mean the ones with dark orange flesh), winter squash and cabbages are the only local vegetables available during the winter months in colder regions, so these recipes will be timely for many readers.

Roasting is a good place to begin with most root vegetables. They sweeten as they caramelize in a hot oven. I roasted baby carrots and thick red scallions (they may have been baby onions; I didn’t get the information from the farmer, I just bought them because they were lush and pretty) together and seasoned them with fresh thyme leaves, then sprinkled them with chopped toasted hazelnuts. I also roasted a medley of potatoes, including sweet potatoes, after tossing them with olive oil and sage, and got a wonderful range of colors, textures and tastes ranging from sweet to savory.

Sweet winter vegetables also pair well with spicy seasonings. I like to combine sweet potatoes and chipotle peppers, and this time in a hearty lentil stew that we enjoyed all week.

Here are five colorful and delicious dishes made with root vegetables.

Spicy Lentil and Sweet Potato Stew With Chipotles: The combination of sweet potatoes and spicy chipotles with savory lentils is a winner.


Roasted Carrots and Scallions With Thyme and Hazelnuts: Toasted hazelnuts add a crunchy texture and nutty finish to this dish.


Carrot Wraps: A vegetarian sandwich that satisfies like a full meal.


Rainbow Potato Roast: A multicolored mix that can be vegan, or not.


Leek Quiche: A lighter version of a Flemish classic.


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Well: A Rainbow of Root Vegetables

This week’s Recipes for Health is as much a treat for the eyes as the palate. Colorful root vegetables from bright orange carrots and red scallions to purple and yellow potatoes and pale green leeks will add color and flavor to your table.

Since root vegetables and tubers keep well and can be cooked up into something delicious even after they have begun to go limp in the refrigerator, this week’s Recipes for Health should be useful. Root vegetables, tubers (potatoes and sweet potatoes, which are called yams by most vendors – I mean the ones with dark orange flesh), winter squash and cabbages are the only local vegetables available during the winter months in colder regions, so these recipes will be timely for many readers.

Roasting is a good place to begin with most root vegetables. They sweeten as they caramelize in a hot oven. I roasted baby carrots and thick red scallions (they may have been baby onions; I didn’t get the information from the farmer, I just bought them because they were lush and pretty) together and seasoned them with fresh thyme leaves, then sprinkled them with chopped toasted hazelnuts. I also roasted a medley of potatoes, including sweet potatoes, after tossing them with olive oil and sage, and got a wonderful range of colors, textures and tastes ranging from sweet to savory.

Sweet winter vegetables also pair well with spicy seasonings. I like to combine sweet potatoes and chipotle peppers, and this time in a hearty lentil stew that we enjoyed all week.

Here are five colorful and delicious dishes made with root vegetables.

Spicy Lentil and Sweet Potato Stew With Chipotles: The combination of sweet potatoes and spicy chipotles with savory lentils is a winner.


Roasted Carrots and Scallions With Thyme and Hazelnuts: Toasted hazelnuts add a crunchy texture and nutty finish to this dish.


Carrot Wraps: A vegetarian sandwich that satisfies like a full meal.


Rainbow Potato Roast: A multicolored mix that can be vegan, or not.


Leek Quiche: A lighter version of a Flemish classic.


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Pictures From the Week in Business

Shari Lanning, assistant professor of anatomy at Ross University in the West Indies, a veterinary college, led a discussion with students as Georgia the dog was examined for a pain evaluation. They don’t teach much at veterinary school about bears, particularly the figurative kind, although debt as large and scary as any grizzly shadows most vet school grads, usually for decades. Nor is there much in the curriculum about the prospects for graduates or the current state of the profession. Neither, say many professors and doctors, looks very promising. The problem is a boom in supply (that is, vets) and a decline in demand (namely, for veterinary services). 
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The Lede: Video of Turkish Premier Comparing Zionism to Anti-Semitism and Fascism

One day after Turkey’s prime minister, Recep Tayyip Erdogan, told a United Nations forum the world should consider Islamophobia a crime against humanity, “just like Zionism or anti-Semitism or fascism,” his Israeli counterpart lashed back. “I strongly condemn the remarks made by Prime Minister Erdogan of Turkey, comparing Zionism to fascism,” Prime Minister Benjamin Netanyahu replied on Twitter.

Video of Mr. Erdogan’s complete address to the United Nations Alliance of Civilizations forum in Vienna was posted online by the United Nations with simultaneous translation into English.

In his remarks, Mr. Erdogan bemoaned “a lack of understanding between religions and sects” and said that the way ahead was “emphasizing the richness that comes from diversity.” After he praised “countries which see cultural and ethnic differences not as a reason for division or conflict but as a richness,” he complained of what he called the world’s indifference to the suffering of Muslims in Syria and elsewhere.

About seven minutes into the video, Mr. Erdogan said:

Unfortunately the modern world has not passed the test when it comes to Syria. In the last two years, we have seen close to 70,000 people lose their lives, and every single day we see innocent children, women, civilians, killed. And the fact that the world has not reacted to this situation seriously injures the sense of justice. In the same way, rising racism in Europe is a serious, problematic area, vis-à-vis the Alliance of Civilizations project.

In addition to indifference vis-à-vis the Muslim countries, we also see harsh, offending, insulting behavior towards Muslims who live in countries other than their own, and this continues to be an inconscionable act that has been ongoing around the world. We should be striving to better understand the beliefs of others but instead we see that people act based on prejudice and exclude others and despiuse them. And that is why it is necessary that we must consider — just like Zionism or anti-Semitism or fascism — Islamophobia as a crime against humanity.

Mr. Erdogan immediately went on to condemn those, including politicians, who use “the media or mass communication vehicles” for “provoking the sensitivities of a religion or a sect or a society.”

The Turkish prime minister has expressed his anger with Israeli policies in blunt terms at international forums in the past, most notably at Davos in 2009. He stormed off the stage at the end of a heated discussion of Israel’s Gaza offensive, after telling President Shimon Peres, “When it comes to killing, you know well how to kill.”

Video of an argument between Turkey’s prime minister and Israel’s president at Davos in 2009.

Relations between the countries suffered another blow in 2010, when Israeli commandos killed nine Turks during a bloody raid on the ship leading an effort to break the Israeli blockade of Gaza organized by a Turkish aid organization.

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Bits Blog: Senator John D. Rockefeller IV Introduces 'Do Not Track' Bill

Before his planned retirement from Congress at the end of next year, Senator John D. Rockefeller IV, the West Virginia Democrat, intends to give American consumers more meaningful control over personal data collected about them online.

To that end, Mr. Rockefeller on Thursday introduced a bill called the “Do-Not-Track Online Act of 2013.”

The bill would require the Federal Trade Commission to establish standardized mechanisms for people to use their Internet browsers to tell Web sites, advertising networks, data brokers and other online entities whether or not they were willing to submit to data-mining.

The bill would also require the F.T.C. to develop rules to prohibit online services from amassing personal details about users who had opted out of such tracking.

Mr. Rockefeller proposed the same bill two years ago. But he did not push it in the Senate at the time because industry groups had pledged to voluntarily develop systems to honor the browser-based don’t-track-me flags. Last year, however, negotiations between industry groups and consumer advocates over how to execute these mechanisms essentially broke down and have since made little progress.

The new Rockefeller bill indicates that the senator believes the industry has not acted in good faith.

“The privacy of Americans is increasingly under assault as more and more of their daily lives are conducted online,” Mr. Rockefeller, the chairman of the Senate Committee on Commerce, Science and Transportation, wrote on Thursday in an e-mail sent to a reporter. “Industry made a public pledge to develop do-not-track standards that will truly protect consumer privacy — and it has failed to live up to that commitment. They have dragged their feet long enough.”

Industry representatives said that legislation was unnecessary because advertising networks and data brokers several years ago voluntarily introduced their own opt-out program for consumers, called Your AdChoices. Unlike the Do Not Track signals which would allow users to make a one-time decision about all online tracking from their own browsers, the industry program requires people to go to a site and individually select the companies, among several hundred, from whom they prefer not to receive marketing offers based on data-mining.

Stuart Ingis, a lawyer for the Digital Advertising Alliance, an industry consortium, said the program, which involves consumers installing individual cookies on their browsers, demonstrates that users already have choices about data collection.

“It’s a lot easier to use a system that is already built and works,” Mr. Ingis said.

Over the last few years, the number of companies that collect information about the reading habits, health concerns, financial capacity, search queries, purchasing patterns and other activities of online consumers has skyrocketed. Industry representatives argue that this benefits people because it enables companies to show them relevant ads, and that the ads themselves finance online sites and services that are free to consumers. Moreover, they say, the data collection is “anonymous” because online services typically use numerical customer codes, not real names or e-mail addresses, to track the behavior of individuals.

But consumer advocates warn that such profiling systems, which can collect thousands of details on nearly every adult in the United States, can be used to segment some people for preferential offers while relegating others to inferior treatment. Despite industry claims that online tracking is anonymous, a few computer scientists have reported that sites often leak information that can identify individuals, including names, addresses and other details, to third parties.

“Nowadays, there is an incredible proliferation of tracking,” said Dan Auerbach, a staff technologist at the Electronic Frontier Foundation, a digital rights group in San Francisco. “Data brokers, companies that you never heard of, are collecting massive dossiers about you as you browse around the Web and, right now, there are no limitations on the collection or use of those dossiers.”

To give people greater control over their own surveillance online, the Federal Trade Commission in a report on consumer privacy last March urged industry groups to adopt Do Not Track mechanisms by the end of 2012. In fact, the major browsers — Firefox from Mozilla, Google’s Chrome, and the more recent iterations of Internet Explorer — already offer the don’t-track-me buttons. When these options are turned on, they send out signals to sites, and third parties like ad networks operating on those sites, that certain users do not want to have their information collected.

But industry groups and consumer advocates have been at odds for more than a year over how “Do Not Track” mechanisms should be presented to users and how online services should respond to the signals. In the absence of legislation or industry consensus, companies are free to ignore those user preferences.

Some browsers have responded to this standstill by taking matters into their own hands and blocking third-party tracking cookies, as my colleague Somini Sengupta reported this week.

But Mr. Rockefeller’s bill indicates that legislative action could pre-empt voluntary industry measures.

“This is a signal that Senator Rockefeller is serious about getting Do Not Track done,” said David C. Vladeck, a professor at Georgetown Law. Until last month, Mr. Vladeck served as director of the bureau of consumer protection at the F.T.C. “I think industry writ large – browser companies, advertising networks, data brokers – are going to understand that he is serious about getting across the finish line.”

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Doctor and Patient: Why Failing Med Students Don’t Get Failing Grades

Tall and dark-haired, the third-year medical student always seemed to be the first to arrive at the hospital and the last to leave, her white coat perpetually weighed down by the books and notes she jammed into the pockets. She appeared totally absorbed by her work, even exhausted at times, and said little to anyone around her.

Except when she got frustrated.

I first noticed her when I overheard her quarreling with a nurse. A few months later I heard her accuse another student of sabotaging her work. And then one morning, I saw her storm off the wards after a senior doctor corrected a presentation she had just given. “The patient never told me that!” she cried. The nurses and I stood agape as we watched her stamp her foot and walk away.

“Why don’t you just fail her?” one of the nurses asked the doctor.

“I can’t,” she sighed, explaining that the student did extremely well on all her tests and worked harder than almost anyone in her class. “The problem,” she said, “is that we have no multiple choice exams when it comes to things like clinical intuition, communication skills and bedside manner.”

Medical educators have long understood that good doctoring, like ducks, elephants and obscenity, is easy to recognize but difficult to quantify. And nowhere is the need to catalog those qualities more explicit, and charged, than in the third year of medical school, when students leave the lecture halls and begin to work with patients and other clinicians in specialty-based courses referred to as “clerkships.” In these clerkships, students are evaluated by senior doctors and ranked on their nascent doctoring skills, with the highest-ranking students going on to the most competitive training programs and jobs.

A student’s performance at this early stage, the traditional thinking went, would be predictive of how good a doctor she or he would eventually become.

But in the mid-1990s, a group of researchers decided to examine grading criteria and asked directors of internal medicine clerkship courses across the country how accurate and consistent they believed their grading to be. Nearly half of the course directors believed that some form of grade inflation existed, even within their own courses. Many said they had increasing difficulty distinguishing students who could not achieve a “minimum standard,” whatever that might be. And over 40 percent admitted they had passed students who should have failed their course.

The study inspired a series of reforms aimed at improving how medical educators evaluated students at this critical juncture in their education. Some schools began instituting nifty mnemonics like RIME, or Reporter-Interpreter-Manager-Educator, for assessing progressive levels of student performance; others began to call regular meetings to discuss grades; still others compiled detailed evaluation forms that left little to the subjective imagination.

Now a new study published last month in the journal Teaching and Learning in Medicine looks at the effects of these many efforts on the grading process. And while the good news is that the rate of grade inflation in medical schools is slower than in colleges and universities, the not-so-good news is that little has changed. A majority of clerkship directors still believe that grade inflation is an issue even within their own courses; and over a third believe that students have passed their course who probably should have failed.

“Grades don’t have a lot of meaning,” said Dr. Sara B. Fazio, lead author of the paper and an associate professor of medicine at Harvard Medical School who leads the internal medicine clerkship at the Beth Israel Deaconess Medical Center in Boston. “‘Satisfactory’ is like the kiss of death.”

About a quarter of the course directors surveyed believed that grade inflation occurred because senior doctors were loath to deal with students who could become angry, upset or even turn litigious over grades. Some confessed to feeling pressure to help students get into more selective internships and training programs.

But for many of these educators, the real issue was not flunking the flagrantly unprofessional student, but rather evaluating and helping the student who only needed a little extra help in transitioning from classroom problem sets to real world patients. Most faculty received little or no training or support in evaluating students, few came from institutions that had remediation programs to which they could direct students, and all worked under grading systems that were subjective and not standardized.

Despite the disheartening findings, Dr. Fazio and her co-investigators believe that several continuing initiatives may address the evaluation issues. For example, residency training programs across the country will soon be assessing all doctors-in-training with a national standards list, a series of defined skills, or “competencies,” in areas like interpersonal communication, professional behavior and specialty-specific procedures. Over the next few years, medical schools will likely be adopting a similar system for medical students, creating a national standard for all institutions.

“There have to be unified, transparent and objective criteria,” Dr. Fazio said. “Everyone should know what it means when we talk about educating and training ‘good doctors.’”

“We will all be patients one day,” she added. “We have to think about what kind of doctors we want to have now and in the future.”

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Doctor and Patient: Why Failing Med Students Don’t Get Failing Grades

Tall and dark-haired, the third-year medical student always seemed to be the first to arrive at the hospital and the last to leave, her white coat perpetually weighed down by the books and notes she jammed into the pockets. She appeared totally absorbed by her work, even exhausted at times, and said little to anyone around her.

Except when she got frustrated.

I first noticed her when I overheard her quarreling with a nurse. A few months later I heard her accuse another student of sabotaging her work. And then one morning, I saw her storm off the wards after a senior doctor corrected a presentation she had just given. “The patient never told me that!” she cried. The nurses and I stood agape as we watched her stamp her foot and walk away.

“Why don’t you just fail her?” one of the nurses asked the doctor.

“I can’t,” she sighed, explaining that the student did extremely well on all her tests and worked harder than almost anyone in her class. “The problem,” she said, “is that we have no multiple choice exams when it comes to things like clinical intuition, communication skills and bedside manner.”

Medical educators have long understood that good doctoring, like ducks, elephants and obscenity, is easy to recognize but difficult to quantify. And nowhere is the need to catalog those qualities more explicit, and charged, than in the third year of medical school, when students leave the lecture halls and begin to work with patients and other clinicians in specialty-based courses referred to as “clerkships.” In these clerkships, students are evaluated by senior doctors and ranked on their nascent doctoring skills, with the highest-ranking students going on to the most competitive training programs and jobs.

A student’s performance at this early stage, the traditional thinking went, would be predictive of how good a doctor she or he would eventually become.

But in the mid-1990s, a group of researchers decided to examine grading criteria and asked directors of internal medicine clerkship courses across the country how accurate and consistent they believed their grading to be. Nearly half of the course directors believed that some form of grade inflation existed, even within their own courses. Many said they had increasing difficulty distinguishing students who could not achieve a “minimum standard,” whatever that might be. And over 40 percent admitted they had passed students who should have failed their course.

The study inspired a series of reforms aimed at improving how medical educators evaluated students at this critical juncture in their education. Some schools began instituting nifty mnemonics like RIME, or Reporter-Interpreter-Manager-Educator, for assessing progressive levels of student performance; others began to call regular meetings to discuss grades; still others compiled detailed evaluation forms that left little to the subjective imagination.

Now a new study published last month in the journal Teaching and Learning in Medicine looks at the effects of these many efforts on the grading process. And while the good news is that the rate of grade inflation in medical schools is slower than in colleges and universities, the not-so-good news is that little has changed. A majority of clerkship directors still believe that grade inflation is an issue even within their own courses; and over a third believe that students have passed their course who probably should have failed.

“Grades don’t have a lot of meaning,” said Dr. Sara B. Fazio, lead author of the paper and an associate professor of medicine at Harvard Medical School who leads the internal medicine clerkship at the Beth Israel Deaconess Medical Center in Boston. “‘Satisfactory’ is like the kiss of death.”

About a quarter of the course directors surveyed believed that grade inflation occurred because senior doctors were loath to deal with students who could become angry, upset or even turn litigious over grades. Some confessed to feeling pressure to help students get into more selective internships and training programs.

But for many of these educators, the real issue was not flunking the flagrantly unprofessional student, but rather evaluating and helping the student who only needed a little extra help in transitioning from classroom problem sets to real world patients. Most faculty received little or no training or support in evaluating students, few came from institutions that had remediation programs to which they could direct students, and all worked under grading systems that were subjective and not standardized.

Despite the disheartening findings, Dr. Fazio and her co-investigators believe that several continuing initiatives may address the evaluation issues. For example, residency training programs across the country will soon be assessing all doctors-in-training with a national standards list, a series of defined skills, or “competencies,” in areas like interpersonal communication, professional behavior and specialty-specific procedures. Over the next few years, medical schools will likely be adopting a similar system for medical students, creating a national standard for all institutions.

“There have to be unified, transparent and objective criteria,” Dr. Fazio said. “Everyone should know what it means when we talk about educating and training ‘good doctors.’”

“We will all be patients one day,” she added. “We have to think about what kind of doctors we want to have now and in the future.”

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High & Low Finance: Report Lays Out Plan to Reduce Government Role in Home Financing





Can the American mortgage market ever function again without Uncle Sam guaranteeing that lenders will be repaid?




It is amazing just how few people think it can.


“For the foreseeable future, there is simply not enough capacity on the balance sheets of U.S. banks to allow a reliance on depository institutions as the sole source of liquidity for the mortgage market,” stated a report on the American housing market this week, issued by a group that was filled with members of the housing establishment.


The panel, which included Frank Keating, the president of the American Bankers Association and a former governor of Oklahoma, does not see that as an indictment of the American banking system, which would much rather trade leveraged derivatives than keep a lot of mortgage loans on its books.


“Given the size of the market and capital constraints on lenders, the secondary market for mortgage-backed securities must continue to play a critical role in providing mortgage liquidity,” added the report, issued by a housing commission formed by the Bipartisan Policy Center, a group that was begun by former Senate majority leaders from both parties. The group thinks investors will not be willing to finance enough mortgages — particularly 30-year fixed-rate loans — without a government guarantee.


The report does an excellent job of analyzing the history of the American housing finance system, as well as looking at the government’s efforts over the years to promote and subsidize rental housing. It calls for changes in those policies as well, aimed at assuring that those with very low incomes “are assured access to housing assistance if they need it.”


But those rental proposals are unlikely to lead to legislation any time soon, said Mel Martinez, one of four co-chairmen of the housing panel. Mr. Martinez, a former Republican senator from Florida and housing secretary under President George W. Bush, said in an interview that any proposal calling for spending government money, as this one does, would face tough sledding in Congress.


But he said it was possible that changes in the housing finance system, which is widely criticized on both sides of the aisle, had a better chance of getting approval.


Certainly, one principle enunciated by the panel will get wide support: “The private sector must play a far greater role in bearing housing risk.” But the details show that the panel still thinks sufficient money can be found for housing only if Uncle Sam remains the ultimate guarantor for most home mortgages.


Currently, the government backs about 90 percent of newly issued mortgages, more than ever before. The proportion fell in the years leading up to 2007 as subprime loans proliferated and then soared after that market collapsed. Since then, the Federal Housing Administration has expanded its role in backing home loans on the low end of the scale. But most mortgages are purchased by either Fannie Mae or Freddie Mac, the government-sponsored enterprises that the government took over after the housing bubble burst.


So-called jumbo mortgages, that is mortgages too large to qualify for purchase by Fannie or Freddie, account for most of the rest. Some mortgages are put into securitizations that have no government guarantee, but many jumbo mortgages end up being owned by the banks for the long term.


The F.H.A. appears to be more cautious than it used to be. The report notes that last year the average FICO score for an F.H.A. or Department of Veterans Affairs loan was close to 720 on a range of 300 to 850. That is about what the average Fannie Mae and Freddie Mac borrower had in 2001.


The commission, whose other co-chairmen were George J. Mitchell, the former Senate Democratic leader; Christopher S. Bond, a former Republican senator; and Henry Cisneros, who served as housing secretary under President Bill Clinton, wants to preserve the F.H.A., but orient it more to those who need the most help. It would phase out Fannie and Freddie — something that is politically necessary — but replace them with something that sounds sort of similar.


The new organization would be called a “public guarantor.” It would guarantee that investors in mortgage-backed securitizations would not lose money, much as Fannie and Freddie now do. But its responsibility would come after that of a “private credit enhancer,” which sounds like a monoline insurer that would make payments to securitization holders if the underlying mortgages were performing badly. That organization would be regulated by the public guarantor, and only after it goes broke — something that should happen only if housing prices fall more than they did in the recent crisis — would the public guarantor be responsible for making investors whole.


Floyd Norris comments on finance and the economy at nytimes.com/economix.



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