September 4, 2014

As if violating the rule of law wasn’t enough of a reason to end the U.S. Treasury Department’s conservatorship of Fannie Mae and Freddie Mac, we would like to offer up another almost-equally compelling reason: If the mortgage giants are going to be successful in shoring up the nation’s housing market, they must be free of political forces that could influence how they are run.

To wit, the Washington Times and the Washington Examiner this week published two very interesting pieces that helped us along this path – a column in the Washington Times from James K. Glassman and an article from Washington Examiner reporter Joseph Lawler. Glassman, a former Undersecretary of State for Public Diplomacy and Public Affairs,argues that it’s time for Fannie and Freddie to “sink or swim” on their own merits. While the idea of government management is usually laughable, the mortgage giants have become “spruced up, profitable and well-managed” and are on track to earn a combined $20 billion in profits this year – more than General Electric, Glassman notes.

Read the full blog: Conservative Angst & Letting the GSEs “Sink or Swim”