Government should take over Fannie and Freddie

Instead of a $300 billion bailout at the Fed’s discount window, a bailout with conditions Dean Baker favors is a better idea.

And, given his suck-up-itis to Big Finance, the fact that Chuck Schumer supports the bailout plan means it must be crap.

Raise the margin requirement — and put them under tighter Congressional oversight. Don’t hand all the keys over to the Fed. That’s the minimal amount of conditions.

But, Baker’s answer isn’t the best one.

Tanta’s is — make Fannie and Freddie straight-up federal agencies — again, in Fannie Mae’s case, since it started that way. And keep it well firewalled from the Fed.