The Other Shoe Has Dropped?First The Subprime Market?Now Bernanke Looks At Fannie Mae & Freddie Mac

Bernanke, in the recent past, had been urging in a passive way for the two heavy weights to lighten their portfolios. Now, it is more pointed with a strong message to Fannie Mae and Freddie Mac to focus more on affordable housing and less risky loans. The Option ARMs where massive foreclosures are occurring are stressing the portfolio. Many families have sought bankruptcy protection to get a handle on their run away finances. Recently, Freddie Mac indicated they would wean the purchase of specific subprime loans with challenged credit. There was always a push to cut the umbilical cord with the government so that Fannie Mae and Freddie Mac could operate more independently. However, with the recent elections and Congressional change that looks like a no go and rather, View the rest of this article