Economist Galbraith on FNMA & FMCC giive away to Bankers..
"The president has been talking up the line about dispatching Fannie Mae FNMA (-3.23%) and Freddie Mac FMCC (-1.43%) with a bullet to the head of each and, well, that would certainly liquidate the middle class.
If you want to create a world in which you are reliant on the market for privately originated mortgages and private securitization, with the reputation of the banks following the crisis, good luck, you are not going to get there. What would happen would be increasingly depressed housing market, a major asset that the middle class has had historically in this country. I very much doubt that is going to happen. It is a way of showing deference to an idealized free market concept, but it is also something that if it did happen, would pretty much negate a pro-middle-class agenda. "