FREDDIE MAC-FANNIE TAKEN OVER BY TREASURY

FANNIE & FREDDIE were taken over by the Treasury Department yesterday.  This is great news for the mortgage and real estate market.  Mortgage credit underwriting should ease, and rates should fall.

The public purse will go kaching, kaching as the federal bailout will cost the public not billions, but a trillion dollars or more.  The federal debt in the trillions of dollars was never actually paid off from the 1987 bailout of the savings and loan industry failure.  Maybe, someday, the Congress will come up with the regulatory architecture for a mortgage system that works.

By October mortgage money should be flowing again.  Yippie!