Obama to Propose Eliminating Fannie Mae, Freddie Mac

[Xyzse]

50. Quite a few things

I understand that they are arguing that the demographics are changing, and that trying to buy a house shouldn't be what people should expect to do.

Meaning, their idea is that" housing is fine but owning a house should not be something people should aspire to".
That change in dynamic, though understandable locks people out of a huge tax shelter, investment and a means to improve wealth.

When looking at the causes for the actual crash, I tend to place the blame on the Private Sector with the inflation of the bubble. This was through firms packaging high risk loans in to securities that go beyond the system of Fannie and Freddie. These were investments passed along that were not guaranteed by Fannie and Freddie that brought things down.

Of course, I agree that they also made bad investment decision.

http://www.americanprogress.org/issues/housing/report/2012/09/06/36736/7-things-you-need-to-know-about-fannie-mae-and-freddie-mac/

I can't see cutting them loose completely at the moment. I also can't advocate to a return to new creative packaging that is not somehow guaranteed by an entity such as them.