Freddie Mac-No Politics (FMCC)

[jarenawer]

Paulson $$$FnF$$$

"The key is getting the private sector into this because if government is setting the prices on your mortgages through a subsidy, what you're going to do is you're going to ultimately get things that are not market reality or economic reality and you will get another bubble again in housing and then we'll be setting ourselves up for another big decline in housing prices," Paulson said. He said Freddie and Fannie should be scaled back to the point where the private sector eventually fully takes over the mortgage business"

"You can't do that all at once, but we should know what the new plan is going to be," he said. "We should have a plan in place to transition to a time when the private sector can play a much bigger role in terms of financing mortgages," he said.