Thoughts on the bailout of Freddie Mac and Fannie Mae
September 08, 2008 at 23:03 PM EDT
[Skip to the end] It comes down to public purpose. The agencies were set up to provide low cost funding for moderate income home buyers. They have done that reasonably well. However, for probably 20 years I’ve been saying the agencies should fund themselves directly with the Treasury or Fed financing bank (same as Treasury). This both [...]