U.S.'s Fannie Needs More Money

Yesturday, Fannie Mae asked for an addition $15 Billion in Treasury bailout funds. Fannie Mae is the infamous gov't sponsored and created corporation (NYSE: FYM) that has been a direct player in housing booms since the 40ies. They provide billions in capital financing for the home mortgage business and was one of the key experimental participants in the sub-prime mortgage lending fiasco since the late 80ies. So, through the U.S. Fannie Mae, and it's boss, Big Banks, the U.S. government is still doing "business as usual", inflating demand for homes when prices are still above rational demand (As in demand exists based on ability and willingness to pay, and not just "want"...Need is different).

Well, there is not going to be another housing bubble, and demand for new homes is never EVER going to be like it was following WWII. The U.S. people will never see earnings like they used to, and the design of cities is no longer going to necessitate "suburban sprawl". Until this economy is fixed and put on an actual rational and sustainable economy with rational growth, then we'll see increased home ownership...but not anytime soon.

Take the $15 billion and put into a public insurance option for healthcare services, or to put money back into Education that the government continues to take out.