by Robert Waldman
I missed this at the time.
Fannie, Freddie Lending Power May Rise
By JAMES R. HAGERTY and DAMIAN PALETTA
The regulator for Fannie Mae and Freddie Mac is expected to announce a plan this morning that will give the government-sponsored mortgage investors more scope to prop up the home-mortgage market.
The plan involves a reduction in capital requirements for the companies and a promise by them that they will each raise several billion dollars of capital this year, likely through a sale of preferred shares, according to several people familiar with the situation. As a result, they are expected to be able to provide additional funding of as much as $200 billion for home mortgages and related …
That was bright. Now I know that Fannie and Freddie aren’t the heart of the problem, but McCain claims otherwise. I wonder why he had no problem with this one (actually I don’t think he knew about it either but he’s the one who says he knows how to solve the financial crisis).
Via OptionArmageddon who called it right at the time.
Oh and remember, I found this photo for Paul Krugman