The Obama administration acknowledged Tuesday that major changes must be made to mortgage giants Fannie Mae and Freddie Mac, but indicated that it supports continuing government guarantees in the mortgage sector. But is that a good idea?
The future of the government-backed mortgage finance giants Fannie Mae and Freddie Mac, which critics have accused of exacerbating the meltdown in the U.S. housing market, will be discussed next month at a conference sponsored by the U.S. Department of Treasury.
Former Federal Reserve Chairman Alan Greenspan said that the recent slowdown in economic indicators is most likely temporary.
"It%u2019s more than likely a pause in the usual cyclical pattern," Greenspan said in an interview with CNBC.