Monday, December 29, 2014

Time for the US treasury and the FHFA to give back Fannie mae and Freddie mac to the owners, shareholders.

Fannie Mae bove mortgage mrkt shares 1214

http://www.valuewalk.com/2014/12/wsj-editorial-eliminating-fannie-mae-angers-longs/

Pretty obvious in 2001,  Fannie mae and Freddie mac were not a problem!
In 2003 Private mortgages and alt A subprime came into fashion and F&F lost market share to them.
In 2007 The Private mortgage market imploded and Fannie and Freddie took back share to save the mortgage market!!
In 2008 Fannie and Freddie were taken over to insure that they would be able to take on the entire PLS market since it had imploded and was completely gone, someone would have to take this portion of the market or complete collapse of the system was about to happen.
It is now 2015! We can all see the markets have re-balanced back to 2003 levels. PLS is gone and Alt a and subprime are gone for good. Time for the US treasury and the FHFA to give back Fannie mae and Freddie mac to the owners, shareholders.
 

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