The following is an article by Alex Pollock of the American Enterprise Institute on what we need to do to clean up the Fannie Mae and Freddie Mac mess. It is so cogent I had to put it on my website with Alex’s blessing.
Ten recommendations for rebuilding a sturdier, more rational housing finance system
By Alex J. Pollock for Mortgage Banking Magazine
American housing finance is living in the wake of the great housing bubble of 2000-2006 and its collapse into the panic of 2007-2009. With house prices having fallen more than 30 percent from peak to trough-something previously considered impossible- they have now arrived back at their long-term trend line.