Fannie Mae-No Politics (FNMA)

[redsox17]

Blue that is great news and this is the part I like.

There’s a simple solution: Reform the GSEs; don’t replace them. Set strong capital requirements. Get rid of any implicit or explicit guarantee from the federal government (the Corker-Warner bill, by contrast, adds a $5 trillion liability to the federal balance sheet). Let Fannie and Freddie compete on equal terms with other financial companies. And banish the political meddling that precipitated the mortgage meltdown in the first place.

James K. Glassman, a former U.S. undersecretary of state, is visiting fellow at the American Enterprise Institute.