Obama to urge Congress in speech to shutter Fannie Mae and Freddie Mac
Not sure what Obama’s end game is here. But you can know we can’t trust him.
Check it out:
President Obama will urge Congress to shutter Fannie Mae and Freddie Mac, the mortgage-giants bailed out by the government in 2008, as part of a strategy to buffer taxpayers from future housing market downturns.
In a speech Tuesday in Phoenix, Obama will call for transitioning the business model of Fannie and Freddie into a system where “private capital must be wiped out before the government pays on any form of catastrophic guarantee,” a senior administration official said.
Obama will also renew his calls for sweeping mortgage refinancing legislation when he travels to Phoenix Tuesday. Arizona’s desert capital was the epicenter of the housing crisis that began in 2008, but the market there has rebounded strongly, with home prices up and foreclosures down.
The president’s visit to Phoenix marks the latest stop on his summertime economic tour aimed at refocusing his agenda on middle class Americans still struggling to fully recover following the recession. The collapse of the housing market in particular had a dramatic impact on people’s lives and the economic viability of communities across the country.