Markets & Economy

Plan for ‘semiprivatization’ of Fannie and Freddie’s role is a fantasy

Government-hating House Republicans will save us, for the wrong reasons
Published on Mar 14, 2014

The White House and a bipartisan group of senators have decided on a liquidation of Fannie and Freddie and a completely reconstituted U.S. system of mortgage finance.These are the same people who brought us "Obamacare" and Dodd-Frank.Fear not: Right-wing, government-hating Republicans in the House will save us. Not because of fondness for Fannie, but because they hate Fannie worse than anybody and won’t allow government in any new system.A salvation deeply embarrassing to me, but given the fools in charge of this government, I'll take anything.Fannie since 1938 did get off track, its semiprivatization a bad idea resulting in bloat and debt, but despite the worst financial disaster in U.S. history has not cost the taxpayer a dime.The right says it hates these agencies because they pose a risk to the taxpayer. Aside from no loss, their beneficiaries are taxpayer-borrowers. The right's real opposition rests on blind hatred of government, and wanting to be sure the wr...