by Dave Fratello
on Monday, September 8th, 2008 at 5:42am.
They went and did it.
The government has seized Fannie Mae and Freddie Mac. The brass are out on their...
The U.S. Treasury is now on the line, buying stock in the formerly private companies, gearing up to buy mortgage-backed securities, and, significantly, taking on risk.
That's your U.S. Treasury, by the way, the one that prints money.
There are all kinds of words to toss around in this discussion – bailout, nationalization, Hail Mary, and so forth. Each word will tend to offend various religions and ideologies.
On one point there's little to argue about, though. This move is a landmark in the current, national housing collapse. To see the Wall Street folks and privatizers in power in Washington orchestrating this move is to recognize how urgent it must have been.
So, with all the potential assurance that government involvement could provide to the mortgage market and the financial markets, the question becomes: Is this the beginning of the end of the housing collapse, or the end of the beginning?
Give us your quick read. Vote in the new poll.
Just let us know if this move, however grand or grave you may consider it, gives you the sense that our local RE market will stabilize, improve or suffer in the next 2-3 years. We'll run the poll just less than 48 hours so that news doesn't intrude too much; closing at 8pm Tuesday.