Fannie & Freddie

This video sparked a question I think is simpler than “how do we wind down Fannie & Freddie?” – I’m not sure we have a good case for “why?”

Somewhere within the complicated answer to that question lies the nature of the guarantee… let’s face it –  the tax payer is still the source of funds behind it all. And it is odd, if not troubling, that with all of this money being made by these agencies that none of that is reducing the tax payer funded bailout. Once those profits go back into the government’s general fund it is anyone’s guess where the money goes…

The author here points out that the government basically props up these two agencies, but does the public understand the pros & cons of that reality?

Our goal is always to create investment strategies with alternative vision. That doesn’t mean we won’t occasionally come to the obvious conclusion, but our job is to ask why and dig deeply. The good news (if any exists here) is that Fannie & Freddie don’t need any new monetary assistance to operate at this time!