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from Ken Little Fannie Mae and Freddie Mac, the two pillars of the home mortgage industry won't be allowed to fail - that much is certain. However, we need to re-examine the role and relationship these two companies have with the U.S. taxpayer. On one hand, they are owned by stockholders who expect profits (and benefit from those profits). On the other hand, the two are so important to the housing market, they will receive a federal bailout to prevent their collapse. This results in capital market profit potential and a floor provided by the government to assure their survival. We should all have such a deal. It may be time to re-think their role as mostly private companies. | |
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