GSEs Shutting Down


gse government shut downIt’s about damn time! I love it when reasonable suggestions finally get taken seriously, even if it does happen to come way too late. As long as some people don’t stop keeping an open mind it’s probably the best we can hope for. What I’m talking about is this:

The Senate is moving to completely shut down Fannie Mae and Freddie Mac within 5 years. That’s like dynamite blowing up in a hurricane during an earthquake. It’s such a bold move but totally the right one.

Basically the Senate has finally realized that the GSEs being so involved in the mortgage market has thrown the system out of whack. And despite their efforts to reel them in the problem just keeps getting worse. So they’re pulling the plug in a big way.

Of course their only solution is to replace them with another government agency, but they think they can make one that operates a little better. I’m pretty skeptical but I’m willing to keep an open mind for now.

The details will take some time to work out but what I’m really curious about is what your reaction is to all this. Do you still have any faith in government? Or should it all be free market stuff? Don’t hold back because now is the time to speak up.

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