Tuesday, June 4, 2013

Fannie and Freddie -- what now?

What to Do With Fannie and Freddie — The American Magazine: " Fannie and Freddie’s current status, which no one wants, should be brought to an end with a five-year transition. What they do that is actually a mortgage business should be truly privatized (not a fake GSE “privatization” as was done with Fannie in 1968), while their government subsidy program should become explicitly a government subsidy program and be merged into the operations of the Department of Housing, Federal Housing Administration, and Ginnie Mae. Fannie and Freddie would thus cease to exist as GSEs. The U.S. mortgage finance sector would move to being about 80 percent private and 20 percent government, instead of its current heavily nationalized status."

Fannie and Freddie, among the biggest Hogs at the Trough!


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