The Real Deal Miami

Financial reform bill lacks whi

July 23, 2010 03:30PM

Glaringly missing from the financial reform bill signed into law earlier this week was a plan to overhaul flailing government-owned mortgage giants Fannie Mae and Freddie Mac, the Economist argued yesterday, suggesting that the pair should be gradually dismantled. “America’s obsession with home ownership is itself questionable, especially now that the trap of negative equity has hampered workers’ ability to move in search of jobs,” the publication opined. “Even if it were a valid goal, there are plenty of countries (Australia, Britain and Canada among them) that have similar or higher levels of home ownership with far less, and in some cases no, systemic government support.” [Economist]