Should Fannie Mae and Freddie Mac be Given a Second Chance?

NOV 8, 2012 12:27pm ET

One industry partisan that I know recently predicted that Fannie Mae and Freddie Mac very likely will earn at least $20 billion each year (combined) for as far as the eye can see. In other words: the ‘bad old days’ are a thing of the past for the two. Unfortunately, the carnage caused by the GSEs buying crappy loans has blown a $100 billion hole in the U.S. Treasury. But at $20 billion a year the debt can be repaid in five years. Here’s something to think about: should they be given a second chance – but with strict limitations on what they can do? Something to think about…