The last paragraph of the article:
“A Treasury spokesman said: “Taxpayers injected $188 billion into [Fannie Mae and Freddie Mac] to stabilize the housing market and lay the groundwork for our economic recovery. Director Watt’s remarks underscore the administration’s consistent position regarding [their] conservatorship: the best long-term solution is comprehensive housing finance reform. Until then, Fannie Mae and Freddie Mac will continue to rely on the $258 billion of taxpayer provided support to sustain market confidence.”
In addition, federal sponsored credit unions have started transferring their mortgages to Fannie and Freddie to offset some of the poorer loans they hold. That’s what happened to our mortgage.
I read that.
The bailouts are NOT stabilizing the housing market ... they are stabilizing the debt and derivatives market ... temporarily.
Not sustainable under any scenario.