Fannie, Freddie Hammered Again; Will it Matter? : Housing Wire
by Tom on August 21, 2008
in Market Musings
Richmond Fed bank president Jeffrey Lacker became the first Fed official to come out publicly and say that the GSEs needed to be “credibly and demonstrably” nationalized, in an interview on Bloomberg television Tuesday afternoon.
“And I think a path like what Chairman Greenspan suggested is probably the best path,” he said, according to a report on Bloomberg’s website. Former Fed chief Alan Greenspan has suggested nationalizing Fannie and Freddie, and then splitting them up into five seperate companies and selling them back into the private markets.”
Fannie, Freddie Hammered Again; Will it Matter? : Housing Wire.
Once again, Paul Jackson does a wonderful job at summarizing what’s really going on in the whole Fannie Freddie thing. He makes a point that there’s a difference between their share price (price of their stock) and the debt that they issue. Their stock is being hammered, but the debt they issue (how they fund the mortgages we write) has held up fairly well.
I encourage you to read the entire article, it’s worth your time.
