Should the government unwind Fannie, Freddie?

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Should the federal government do away with housing finance giants Fannie Mae and Freddie Mac? As the debate rages on, CNBC talked to Treasury Secretary Timothy Geithner and Congressional Oversight Panel chair Elizabeth Warren about their views on reforming the housing finance system. Afterwards, Howard Glaser, former counselor to the Department of Housing and Urban Development secretary, and Armando Falcon, chairman and CEO of Falcon Capital Advisors, weighed in with their analyses. Falcon’s take: we do need government support in the mortgage market — right now, through Fannie and Freddie — until a new secondary market is set up in this country. However, he said, the current system is “inherently flawed… we have to come up with a new system that is either fully private or fully government or some healthy mixture.”