All Commentary
Tuesday, February 1, 2011

Fannie, Freddie May Be Here to Stay

“Many members of Congress say they want to end the shotgun marriage between the federal government and mortgage giants Fannie Mae and Freddie Mac, which was arranged in the heat of the 2008 financial crisis. But breaking up could be hard to do. Despite much rhetoric about the urgency of ending the drain on taxpayers from covering Fannie’s and Freddie’s losses, which stand at $150 billion and could range up to $400 billion, analysts expect fears of setting off another downward spiral in the housing market to prevent Congress from getting rid of the enterprises anytime soon.” (Washington Times)

The tyranny of the status quo.

FEE Timely Classic
“Bootleggers, Baptists, and Bailed-Out Bankers” by Bruce Yandle