Obama to Shut GSEs 1

obama shuts fannie and freddieObama has finally caved to common sense. All it took was a mountain of evidence, huge losses, overwhelming public opinion, and more staff changes than I can remember. But it’s finally happened.

The President has publicly called for the “winding down” of Fannie Mae and Freddie Mac and an end to their “failed business model.” That is the most refreshing news I’ve had in a while.

It’s not hard for most people to see that a government run organization just should not be this heavily involved in the housing market. So some of the aims of bills in both the House and the Senate point to:

– more private capital involved

– more access to 30-year fixed rate mortgages

– a responsible transition to a non-government NPO

These are all way overdue but it’s good that public officials from the bottom all the way to the even deeper bottom are able to feel secure enough to speak out about it.

Let’s hope some good actually comes of these proposals and we see real changes in the markets soon. If you’ve had any negative GSE experiences, either with Fannie or Freddie, leave your story in the comments section.

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One thought on “Obama to Shut GSEs

  • Carmela from the Inland Empire

    Hello Cory, I hope all is well in your neck of the woods, I was just compell to read the story you shared and your statement and I could not help but to reply, so here it goes.

    Cory wasn’t ‘private capital’ managed my investment banks and companies owned by commercial banks, lack of federal oversight in loose lending that Clinton was told about but decided to put off such fed-legislation (though, balanced the budget due to primarily foreign pressures and some domestic pressures) which Bush 1 also decided not to enact/put off—a ‘big’ piece of the pie (with more pieces/factors) remaining) what led to the RE bubble bursting. I believe sometimes kenesian policies are due, perhaps by fully revamping SM and/or FM, or hell, people are sick of hearing of them, with the bad rep they carry—perhaps establishing a new agency perhaps, under a cabinet or some quasi controlled new brain child…some division you could call it, under the FR that no president or committee could influence–hypothetically, and that such director or CEO would be appointed by solely the FR.

    The Fed controls money, surely they could oversee or sway second to their primary duties (no pun intended) the secondary market that would only strictly deal with the housing market….but strictly giving 100% free reign (I am assuming you meant) of the housing-secondary market to private capital managed by whom I formerly mentioned sounds to shaky and high risk for me….and for the record, I do not swing left or right or even dead center, I am so independent that I dont even belong to the Independent party…better said, I am an issues person. I hope you found my points enlightening. ‘Carmela from San Bernardino, CA.