Waving goodbye to Fannie Mae and Freddie Mac

Can’t bear to watch, but you do get some choice quotes…

The understatement of the day, from The Independent:

The US Treasury is close to a deal to prop up the mortgage finance giants Fannie Mae and Freddie Mac, whose crumbling finances have put the US housing market in jeopardy and threatened to turn an economic slowdown into a deep recession.

Prop up? Just a few months ago Congress was trying to use the GSEs to “prop” everyone else up. As for the housing market “being in jeopardy” I’m speechless.

Jim “Beach Oil Barron” Cramer says ‘stop the madness‘:

The only hope to break the chain of despair and turn around the endless declines in home values to the point where you SHOULD walk away from a home with a mortgage larger than the value of your house, is to stop this house-price depreciation.

I can’t figure out if he is eluding to the fact that GSE paper is underwater along with so many homeowners, or that Conoco-Phillips should immediately start doing energy exploration in everyone’s backyard.

But Blogging Stocks got the headline spot on – Government to wipe out Fannie/Freddie shareholders by Sunday:

And now what could become history’s biggest transfer of tax dollars to bail out bad lending begins.

Yep.

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