Fourcentson1dollar, I totally agree, the Aug. 17th move was completely political, and that's it.
Joe, I really think at the end of the day, Obama or Romney will likely do just about the same thing regarding final resolution of the GSE conservatorship. If Romney is elected, he will likely follow through with something like the Millstein plan. If Obama is re-elected, he will likely follow through with something like the Millstein plan.
The GSEs are pillars of the housing system, and the model works, having the government lending a hand, with the private sector providing the things that government can't do.
Remember what Reagan once said, "Governments tend to not solve problems, only re-arrange them".
So they won't change something that has worked for many years, just re-arrange (i.e. reform).