Okay, so we’ve all heard about the government takeover of Fannie Mae and Freddie Mac. What does this mean?
For one thing, expect banks to have to step through a lot more red tape. However, this entire development is concerning. On one hand, this had to happen, or the mortgage industry stood a good chance of collapsing, which would crash the weakened US economy.
On the other hand, we now have a government that can’t manage it’s own finances running the biggest mortgage lenders in the world.
