I think we could survice without Fannie, Freddie and even the FDIC. Without the taxpayers subsidizing all the failures, the interest rates would go up 2% for best loans (more for others), but why subsidize bad loans, bad management so “innocent” parties in the RE Industrial complex can make great profits with no risk. Buffet would step up with his bank (WFC) and implicit guarantee that deposits are safe, credit unions with their conservative practices would flourish. See report from fed below:
Glad I got of out Moodys last year. Dont know why Buffet still holds 20% of shares, it is a company without any ethics. They ZERO accountability for their ratings. They can not be sued, they have hold harmless clause. They could have given Indymac AAA+ and they would downgrade the day after FDIC takever with NO consequences. WHY? Because pension funds, mutual funds dont give a hoot, its not their money. Since they are compared to peers, they can say well everyone was hurt, not my fault, business as usual. Fidelity and other mutual funds don’t vote on shareholder resolutions, etc.
