A senior Democrat, part of the Obama administration, has said that the ailing housing finance companies, Fannie Mae and Freddie Mac must be allowed to shut down at the current form. He feels that these companies are white elephants eating away too much of taxpayers’ money and does not have any real hope of a full fledged recovery.
How many more takers will be there for the opinion of Mr Frank, we will know over the coming weeks.
And if these two housing finance majors are allowed to die down, then the US government and the US FED have to find a dependable and quick loan source for future home loans to the US citizens.