Alan Greenspan On Fannie and Freddie

Former Federal Reserve Chairman Alan Greenspan was recently interviewed by CNBC and commented on the U.S. federal government's 'rescue' of the country's Government Sponsored Entities, Fannie Mae (FNM) and Freddie Mac (FRE) :


" You cannot have a type of organization which is half public, half private. Essentially the profit turns out to be for the private sector and the losses are socialized. That is NOT capitalism. That is NOT the way our system functions and Fannie and Freddie are a major accident waiting to happen. "


* FYI + According to U.S. Treasury Secretary Hank Paulson, Fannie Mae and Freddie Mac together finance about 70% of ALL U.S. residential mortgages (70% MarketShare in the U.S. mortgage financing industry)

Data Courtesy: CNBC