Friday, January 21, 2011
Fannie and Freddie Rise Again
Apparently Fannie and Freddie are like the zombie who won't die. This piece in today's NYT tells us that some of the large banks would like to take over Fannie's and Freddie's activities, complete with government guarantees (explicit this time). Apparently the large banks would like to convince us that 30-year mortgage contracts and mortgage subsidies are essential for the pursuit of happiness. So long as Fannie and Freddie are going the way of the dinosaurs, they would be happy to take over for them. This is of course to be expected, and you can't blame them for trying, but what a bad idea.