Freddie Mac-No Politics (FMCC)

[pablocruize]

If there were lots of positive articles on Fannie and Freddie your assertion would be a moot point. The fact is there are lots of negative articles but no crystal balls.

The future of the GSE's is wrapped in politics and a lot of monetary and litigious inertia. A majority of people in both parties blame the GSE's for the financial melt down. That's a false perception of course but it no more mandates the demise of Fannie and Freddie than the twice as negative public perception of Congress means its elimination.

Obama says he supports the (reform, repeal, replacement?) of the GSE's but appoints Mel Watts a radical advocate of increased low income housing loans ala Community Reinvestment Act. Now where has Obama supported anything the GOP wants if it were not likely to give him a play into a Alinskyite media driven public perception trap to skunk the Republicans?

The whole collapse of the GSE's and their negative perception was caused by their morphing into a private financial dacha for a lot of connected political types to make tons of money. For Obama or Watts the only way that system continues is the GSE's maintain the sort of safe haven off the U.S. budget refuge for investors to park their money. (That's the reason so many trusting retires and pension funds put their money there not expecting to be ripped off by the Treasury!)

For Boehner to bring the Henserling Bill to a floor vote would be a good move for the banks and the anti guvment types but bad politics. Things are way to weird and fluid to know whats going to happen but inertia is still the strongest force at work. I'll stay long.