Fannie Mae-No Politics (FNMA)

[BottomBounce]

So they intend to TRY to privatize mtg ins.......obviously very restricted use,. To be profitable, private mortgage insurance will necessarily be more expensive (higher interest rates) which obviously CANNOT BE DONE in this economic climate of foreclosures and unemployment.
Both Geitner and Bernanke opine that it would be 5 to 7 years before there would be any semblance of normalcy in these two areas. Since all companies have tightened their belts, laid off all excess employees but maintained stable production, currently they are hiring only overtime or part-time workers, it appears that it will take many years for a significant downturn in unemployment. How, under these conditions, can the government make mortgages more costly by privatizing, and making housing more expensive when we have a glut of vacant properties and no buyers?