Fannie and Freddie, Please Don't Change!

Two gigantic companies, Fannie Mae and Freddie Mac, contributed to the housing crash and the near collapse of the banking system. So, now that we are reforming the financial system, what should we do to punish or reform these two mortgage giants?

Nothing, for the most part. Fannie Mae and Freddie Mac should continue to operate the way they do today.

Now, before you rush to leave an angry comment, consider this: The most important reform that we could possibly make to Fannie Mae and Freddie Mac has already happened, and there's a serious risk that Congressional "reform" will undo that change.