wetwillie

The Government's Moral Hazard with Fannie and Freddie

Mahesh you are right on the point. about "credit scores". But I'd also like to point out with the takeover of Freddie and Fannie the is an implied timetable to get loans off their books. And what do you think that means? What I forsee happening is the politically friendly institutions (most of them) will buy these loan portfolios for pennies on the dollar and this will be the next fleesing of the taxpayer.