Fannie and Freddie at the Congress Drive-Up Window: One HELOC To Go, Please

Late today the U.S. House of Representatives okayed Treasury Secretary Paulson's aid plan for beleaguered mortgage financing duopoly Freddie Mac (FRE) and Fannie Mae (FNM). My favorite part? The plan includes, as requested, an unlimited line of credit for Paulson to exercise on behalf of the two companies.

Kind of ironic, isn't it? The bailout plan for mortgage-struck Freddie and Fannie includes something awfully similar to the sort of home equity line of credit [HELOC] nuttiness that got the mortgage market in trouble in the first place. Maybe we should call it a NELOC -- a national equity line of credit. Good thing the U.S. still has some.

Comments

[AlexS:]

Well said. Clearly the Congress feels free to draw freely on those of us who still have some positive equity. Thanks Barney, Harry, Chris ... old pals.

2008 Jul 23 07:22 PM

[Mbuna:]

"Maybe we should call it a NELOC -- a national equity line of credit. Good thing the U.S. still has some."

Unfortunately, not for long. Hmmm.... could that be the ulterior motive all along?. If you siphon all the money out of the government won't that eventually result in less government? Plus, you'll have all the money to boot. Sounds like plan.... stay tuned....

2008 Jul 23 09:59 PM

[KEYSTONE139:]

An article that hits these Wash. DC scum right in the face ! ! !

2008 Jul 24 02:47 PM