The housing market cannot function without the support of the federal government and its captive mortgage-finance agencies, Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner said this week. Geithner spoke at a Treasury conference convened to generate ideas for reworking the government role in the mortgage market.
Several economists and financial executives at the conference argued for abolishing Fannie and Freddie, which currently buy two-thirds of U.S. mortgages. The government has spent more than $150 billion to cover their losses. Geithner favors revamping the companies, arguing that mortgage lending would dry up in their absence.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Magazine solutions - December 27, 2024 / January 3, 2025Puzzles and Quizzes Issue - December 27, 2024 / January 3, 2025
-
Magazine printables - December 27, 2024 / January 3, 2025Puzzles and Quizzes Issue - December 27, 2024 / January 3, 2025
-
Why ghost guns are so easy to make — and so dangerousThe Explainer Untraceable, DIY firearms are a growing public health and safety hazard
