Does the federal government via the FHA really need to subsidize the New York City condo market with government backed loans? They will now be available for "rich New York City buyers [who] can now borrow 96.5% of the price of a new $800,000-$3 million condo and have their loans insured by the government". Never mind the fact that government subsidies helped wreck the housing market in the first place... And will this guaranteed loan really have an effect on the rich people fleeing New York to avoid the approximately 40% cumulative tax rate? I wonder what abandoning the rent control policies would do to the market... Unfortunately when things are not working right the impulse of those in charge is to create more government interference, not less.