Why We Have Freddie and Fannie
The Securities Industry and Financial Markets Association, Wall Street’s main lobbying group, said in a proposal submitted to the Obama administration on Wednesday that the government couldn’t completely exit the mortgage market without sending costs sharply higher for consumers.
As a consumer, are you anxious to keep Freddie and Fannie there to hold down costs for you? Well, you should be glad that the Securities Industry and Financial Markets Association is there to speak on your behalf. After all, they have no self-interest involved in steering the mortgage financing system through Wall Street. They just care about you. And when Congress votes to structure Freddie and Fannie along the lines that these helpful folks suggest, it is because Congress cares about you, too.
Thanks to Kevin Villani, via email, for the pointer.
[UPDATE: Megan McArdle is in a similar mood.]