Monday, February 21, 2011

The End of Fannie and Freddie?

"On February 11, the day that Hosni Mubarak resigned as president of Egypt, the Obama administration released its report to Congress on reforming America’s housing finance market. The report most notably proposes phasing out Fannie Mae and Freddie Mac, the two large government-sponsored enterprises (GSEs). Like Mubarak, the GSEs have seen their once formidable political position reduced to one of helpless isolation, abandoned by all former supporters. However, as in Egypt, deposing former leaders does not by itself ensure a happy outcome. American housing policy is afflicted with deep political pathologies, and unless these can be confronted and overcome, a future without Fannie and Freddie could turn out to be worse than the status quo."

The End of Fannie and Freddie? | The Weekly Standard

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