And the billionaire investor Warren E. Buffett, the chairman of Berkshire Hathaway, said in an interview on CNBC that “the game is over” for the firms to continue operating as independent companies.Read the entire NYT story here.
Now, this does not mean that Fannie and Freddie are going away. The federal government has guaranteed to somehow back them. However, the reality is that the home mortgage market is about to become even tighter, even sooner.
We may be looking at a huge decrease in mortgages and huge increase in rental agreements. Which, contrary to the myth of an "ownership society" is not an inherently bad thing.
