Remember when Fannie Mae was a private company? Freddie Mac? AIG? Ah, those were the days. But more to the point, remember when the federal government took them over? Wouldn’t it be nice to know what we’re doing with them?
Direct control over Fannie and Freddie, in particular, would seem to give the government substantial leverage over the fate of the housing market. Prudent action to help forestall as many foreclosures as possible, thus preventing the housing market for getting into a situation where we undershoot the floor, would be really nice. And at a minimum, before shelling out for a new bailout it’d be nice to see something about how the previous bailouts are going.