It looks like the Obama administration is set to magically change the way we create mortgages.
http://www.reuters.com/article/2011/02/10/usa-housing-idUSN1028923420110210
"Having taken more than $150 billion in direct taxpayer funds since being seized by the government more than two years ago, Fannie Mae and Freddie Mac are the largest recipients of bailout assistance stemming from the financial crisis of 2007-2009."
Ron Paul tried to stop Fannie, Freddie, and the Federal Reserve and predicted a housing collapse.....in 2003.
http://www.lewrockwell.com/paul/paul128.html
The failure of Fannie Mae and Freddie Mac is failure because of government interference in the market, not capitalism. Free market capitalism would not artificially lower interest rates by a central banking cartel and then guarantee all the bad loans by the government.
But then we all know Ron Paul is crazy.
So today we await the new government plan to save us. After total government failure of managing an entire industry, I have no doubt the new plan will only be more power to the government. Of course nobody will trust the free market. Somehow we lived without government interference in the housing market for 140 years. How do you imagine they survived?
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