Next Up: Resolving Fannie Mae, Freddie Mac
Take a load off Fanny
Take a load for free
Take a load off Fanny
And (and) (and) you can put the load right on me
–Lyrics, “The Weight”
With Quantitative Easing 2.0 playing out now, what’s next up for Congress and the President, economy-wise?
Resolving the financial black holes known as “Fannie Mae” and “Freddie Mac” (or now conflated as “Frannie”).
In a nutshell, all the proposals I’ve seen involve some sort of phase-out, vs. cutting off either “cold turkey.”
In the meantime, the official policy seems to be “pretend-and-extend” — and subsidize, to the tune of tens of billions of dollars.
