Fannie Mae and Freddie Mac: Crashing Through the Nation’s Financial ‘Levee’

Marla Singer at Zero Hedge wrote an important piece regarding the Agencies this weekend. I am sure that she will get a lot of .GOV reads from this. I believe that she might be the first to not only blame the government for the problems at Fannie (FNM) and Freddie (FRE) but to make a case that the government might be responsible for some of the consequences. Ms. Singer may be onto something.

There was an interesting court case down in New Orleans last fall. There are numerous appeals out on this case, so no precedent has been set as yet. But we are getting close. There may be some connection to the facts in NOLA and what happened with Fannie and Freddie.