Fwd: Enterprise Update: Deal with Fannie & Freddie Now or We'll Pay Later

Enterprise Update Eliminating barriers to enterprise and innovation Recent Updates The Financial Crisis Responsibility Fee: The Wrong "Solution" Obama Plan Blows Secret Kisses to Wall Street How the Internet is Strengthening Democracy Financial Regulation: Small Business, Little Role NEW VIDEO: Heritage's Entry to the EPA Video Contest Effects of Unemployment Benefits Featured Research Deal with Fannie and Freddie Now or We'll Pay Later By David John and James Gattuso What's the main selling point for the financial regulation bill Congress is debating? That it would end taxpayer bailouts. The Senate even added an amendment directly noting that the bill is intended to "prohibit taxpayers from ever having to bail out the financial sector." But don't breathe a sigh of relief too quickly. Because the bill's many problems include this frequently overlooked fact: It does nothing to fix the problems with Freddie Mac and Fannie Mae, both of which A) played a major role in the meltdown of 2008 and B) are asking for more money. Ignoring Fannie and Freddie would be a huge mistake. More than a year after going into receivership, they still dominate the housing finance market by buying mortgages from lenders, packaging them into bond issues, and then reselling them to investors worldwide. Last year, the two financed or backed about 70% of single-family mortgage loans. They hold about $5 trillion in their investment portfolios. >> Click here to read the full report For more information, visit Heritage's Enterprise and Free Markets webpage, which features research, commentary, blog posts, charts and additional policy resources. Red Tape Rising The regulatory burden on Americans continued to surge during 2009, with record increases in costs thanks to both the Bush and Obama Administrations. Given ongoing regulatory initiatives at several agencies, it is very likely that this surge will continue. Click here for more information About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute -- a think tank -- whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400