Jimmy Lathrop

Fannie, Freddie Common Stock Is Now A Call Option

GSEs were established to pass on savings to homebuyers to make mortgages more affordable. Adjusted for real inflation, the savings passed on are negative. If the GSEs didn't exist, the market would have to adapt and find creative solutions to sell mortgages. But who has time for that when you're too busy lobbying? The GSEs are on the canvas but the ref is counting slowly much to the disdain and howling of the crowd. Eventually, the ref will have to hit "10" and the world will not stop. All of you GSE touters can go on and put your stock in BAC or some other "quasi-government" entity to make yourselves feel better.