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Fannie and Freddie Nationalization:

For those looking for a nice summary of issues around Fannie and Freddie, I found this article in the NY Sun pretty informative.

Opher Banarie (mail) (www):
This post motivated me to look into the differences between Fannie and Freddie. From Wikipedia:

From 1938 to 1968, the secondary mortgage market in the United States was monopolized by the Federal National Mortgage Association (Fannie Mae), which was a government agency during that period. In 1968, to help balance the federal budget, part of Fannie Mae was converted to a private corporation. To provide competition in the secondary mortgage market, and to end Fannie Mae's monopoly, Congress chartered Freddie Mac as a private corporation.

The Emergency Home Finance Act of 1970 created Freddie Mac. The goal was to create a secondary market for conventional mortgages...

So Fannie is a New Deal Era hold-over and Freddie was created by Congress "to end Fannie Mae's monopoly"? Why not just end Fannie and let the market take on managing the secondary market? Congress chartered "competition" to an organization which Congress created...what were they thinking?!
9.9.2008 5:56pm
Ron Mexico:
Please forward to the McCain campaign so they can get it to Palin . . .
9.9.2008 6:40pm
neurodoc:
Sorry, but I found this article pretty thin gruel.
9.9.2008 10:52pm
A. Zarkov (mail):
"... the secretary [Paulson] blamed the turmoil surrounding Freddie and Fannie on their "flawed business model"

Where does the business model come from? The Charter? If so then Congress is responsible for the mess. But we knew that already.
9.9.2008 11:32pm
bobvis (mail) (www):
Did anyone notice this line in the article?

'Senator McCain, in an appearance on CBS's "Face the Nation," also offered support, though he criticized the "sprawling, massive bureaucracy" that he said he contributed to the crisis.'

If McCain actually said that was what he contributed to the crisis, shouldn't that be bigger news?
9.10.2008 12:17pm