Markets & Economy

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

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

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...