Financial Times: US debates fiscal impact of Fannie and Freddie

The intensifying focus on what to do with Fannie Mae and Freddie Mac is highlighting a fundamental question about the mortgage finance companies: are they cash cows or a liability contributing to the US deficit?

The answer affects not only how policy makers evaluate housing finance reform, but also how they view spending issues related to the overall federal budget. Critics say those who see the once failing Fannie and Freddie as money machines are distorting the true cost of their operations, which are overseen by the US government.

Financial Times
– Gina Chon