Research123

Saving Fannie and Freddie

Wall Street has been trying to kill Fannie and Freddie for years. If they succeed, it will ultiamtly lead to a fragmented and expenseive mortage market with no central well understood set of rules, since the notion of "conforming loans" will dissapear without financial heavyweights to enforce the rules.

Make no mistake, a Wall Street victory in the name of free enterprise will spell the death nell for the form of widespread mortage-fuled homeownership that has lifted vast swaths of America up into the middle class over the past 80 years.

Congratulations, financial economists!