April 15 (Bloomberg) -- Fannie Mae and Freddie Mac are under pressure from lawmakers to revamp their operations as the mortgage-finance companies tap more government money to survive.
Among the options under discussion are combining the companies, breaking them up or reshaping their missions.
“It’s highly unlikely that they would return to the way they used to be,” said Ira Jersey, the head of U.S. interest rate strategy at RBC Capital Markets in New York.
Bottom line. It was a bad idea. The politicians wanted to give a home to all of us. But, we were not making enough money to afford it. Fannie and Freddie were supposed to "fill the gap". It did not make any sense and they have to disappear. No question about it. A monument to bureaucratic fiasco. The markets always win.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs. George Dagnino, PhD
Since 1977
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