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Thursday, September 11, 2008
Fannie, Freddie rescue bad news?
The Atlanta Journal-Constitution
“U.S. taxpayers will soon be active participants and financial stakeholders in the U.S. mortgage market, thanks to the Bush administration’s move to seize control of lending giants Fannie Mae and Freddie Mac. When a homeowner decides to walk away from their mortgage obligation, you and I will be obligated to help,” writes Chris Ciovacco in an opinion column.
He concludes: “The government’s takeover of Fannie and Freddie does not make things much better, but it does prevent them from getting worse in terms of further constraints on Fannie’s and Freddie’s ability to support the mortgage market. While this may be good news for short-term stock traders, it is most certainly bad news for longer-term investors and taxpayers.”
What do you think?
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