Freddie Mac CEO Richard Syron told reporters yesterday that Freddie’s dual role as a government sponsored entity charged with creating profit for private investors and serving the public by boosting the housing market is “almost impossible.”
We almost agree:
Fannie and Freddie are leftovers from an era when giant government entities seemed essential to achieving social goals. … Congress should look at breaking up both. A larger number of smaller entities could compete with each other without artificially dominating the market. In other words, let’s bring real capitalism to the housing-securitization markets.