Government Takes Over Fannie Mae and Freddie Mac
.Government Takes Over Fannie Mae and Freddie Mac
So the US Government has taken over Fannie Mae and Freddie Mac, pillars of the mortgage industry in the US… they were originally state entities, went private but with government support, and are now state-controlld again.
While some commentators see this as a positive step, grave questions remain about the US economy and the state of its financial markets. I think that the fact that this news was announced on a Sunday underscores how bad the situation is.
Personally, I don’t know if this is a positive step or not, from the point of view of the majority of Americans rather than the financial big shots whose interests the Administartion normally represents. This may be a situation where their interests are joined, but I’m not certain that that’s the case. What does appear to be the case, however, is that a lot of people who have made vast amounts of money off these “government-supported”, quasi-private (private profit, public risk) enterprises are now being bailed out by the government.