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The argument against Fannie and Freddie reform

New trend emerges in popular thought

August 9, 2013
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Seems like just last week, the legislation to reform Fannie Mae and Freddie Mac held broad support.

After all, who would want to keep around the government-sponsored sponges that sucked $187 billion away from taxpayers?

And the voice for GSE reform seemed so loud last week, simply because it was.

Now that the President spent this week appealing to the public to support GSE reform, those who criticise his platform simply couldn't help themselves.

Two articles highlight this point.

Peter Morici, a blogger for Fox Business, said private lenders think mortgages are just too risky to provide at an affordable rate.

A more balanced approcah comes from the USA Today, which believes that doing away with Fannie and Freddie would also drive up the cost of mortgages, thereby defeating the President's plan for affordable housing to support the middle class.

GSE reform is years away and nothing more than a pipedream at this stage.

Already critics are emerging into a new trend, saying such a notion is nothing short of a nightmare.