Fannie and Freddie Go Govie

It seemed like only a matter of time. CNN reported this weekend about the major change of leadership in our American financing department. The government stepped in to take over Fannie and Freddie, the governing bodies of home loans in America. The old saying goes, “I brought you into this world, and I can take you right back out of it”. At least $5 Trillion in home loans are currently backed by these monster companies. With additional $200 Billion being added into treasury support, Washington needs a little “home team” management before they feel comfortable for America’s future when so much is riding on their shoulders. So, Treasury Secretary of Washington is placing both companies into a conservatorship. (define conservatorship- appointing a guardian over someone for financial reasons typically when said person is incapacitated or disabled). The plan will be to return Fannie and Freddie to it’s original administration once balance and control is regained. So, this conservatorship is only temporary.
Are Americans and advisers “down with this”? Bush, and just about anyone else that has commented on the change are satisfied and believe it is necessary to get our housing market under control. Just since last summer, $12 BILLion$ dollars (said like Dr. Evil from Austin Powers) has gone lost between the two companies.
What does this mean to you? You won’t feel the change, it’s just hopeful that our economy who’s economic foundation is our housing market, will see a faster turn for the better.