Fannie Mae and Freddie Mac have been designated as the official toxic waste dump. Ok, that’s my headline, not the government’s. It is a wait-and-see situation with this new plan for Fannie and Freddie to take on the problems in the mortgage market. Will it help at all? I’m not optimistic, considering these two are in so much financial trouble now, and they need to raise capital even with the lowered reserve requirements. The Federal Reserve Board has lost their collective mind and everyone trying to come up with new proposals to save the housing market are grasping at straws. If the government doesn’t stop it’s interventions, this mess is just going to keep getting worse.
