Jul 15
Brian Bethune, chief U.S. financial economist at Global Insight,
said “Bold, creative, aggressive policy action is needed
for the GSEs to survive in their current capacity as private entities,
and it is needed now.”
He called the capitalization-crisis of Fannie Mae and Freddie Mac
a “potentially dangerous turn of events in the current U.S. business
cycle” that must be “defused swiftly and effectively, because failure to
do so would risk a further meltdown of the housing and
mortgage markets of proportions not seen since the depression era.”