September 8, 2008 Comments

Federal Government to Reassume Control of Fannie Mae and Freddie Mac

Freddie Mac and Fannie Mae were both originally established as government agencies. Years later, each agency became publicly owned corporations and remained that way until this weekend. Today, it was announced that the government will bail them out and the Treasury Department is seizing control of the companies. The financial markets reacted favorably to the news, as it is widely viewed as a positive move to help lower mortgage rates and improve the economy. As much as I am opposed to government intervention in private enterprise, I think this will indeed provide more benefit than problems.