Friday, February 11, 2011

Obama Calls For End Of Fannie Mae, Freddie Mac

Obama Calls For End Of Fannie Mae, Freddie Mac: "NEW YORK -- The Obama administration plans to wind down bailed-out Fannie Mae and Freddie Mac over the next five to seven years, Treasury Secretary Timothy Geithner said Friday.

The taxpayer-owned mortgage giants, which were effectively nationalized in 2008, guarantee nine of every 10 new mortgages along with other government agencies. Delinquencies on home loans backed by the two companies have cost taxpayers more than $150 billion."

As I said below, this is a herculean task. "Winding down" Fannie and Freddie? Somehow the private sector is just going to take over the multi-trillion dollar responsibility of buying, securitizing, and "guaranteeing" 90% of the mortgages in the US?

Well, at least it will be a good practice round in case nationalization of health insurance collapses and they have to get the private insurance industry to take it back.

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