Politicians of all political stripes love to bash Fannie Mae (FNMA_) and Freddie Mac (FMCC_). However, unwinding the government sponsored enterprises (GSEs) could be very dangerous for the U.S economy, according to Rafferty Capital Markets analyst Richard Bove.
“Historians will relate that the reason that the nation has 20 and 30 year fixed rate mortgages is because the GSEs buy them,” Bove wrote in a note to clients on Friday.
via Killing GSEs Could Kill Fixed-Rate Mortgage Loans, Says Bove – TheStreet.
