America needs a Big Fannie. Yes, Fannie Mae and Freddie Mac are already too big to fail, and Congress is considering proposals to combine these giants into one giant Fannie. Let’s play a word association game: Fannie (rear end) + Democrats (Donkeys) + Republicans (Elephants) = One Big Fat Ass?
You guessed it. Put all the problems on one balance sheet (aka The People’s) and start eating more loans, grow that hind side larger.
No, just like any New Year’s dieter knows, what we really need is smaller Fannies in America. We need to get on the tread mill of fiscal discipline, only make loans that make common sense, and admit our past mistakes and modify the loans that don’t work today. A bunch of smaller fannies will direct lending in the right corners for economic growth.
A bigger Fannie is a big problem.
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