The time has come for President Barack Obama to release the GSEs from a debilitating “conservatorship” and end the “profit sweep” which is an unconstitutional, de facto, nationalization of two private corporations. It is the last major unfinished piece of business from the 2008 recession. Obama has claimed that he rescued the financial sector, and the auto industry. Now he must release Fannie Mae and Freddie Mac to save the housing industry and the American dream of homeownership.
Homeownership is at its lowest level since 1965. For many in the middle-class, owning a home is one of the few ways to begin to acquire some measure of wealth and security. Since the Great Depression, Fannie Mae has made home ownership affordable for millions of Americans. Fannie and Freddie have also served the greater good with their affordable housing initiatives.
Obama’s term is nearing its end. Within months, the Republicans will control all three branches of government. Many Republican politicians dislike the GSEs’ affordable housing initiatives, which are vital to struggling Americans. If the president takes action now, the GSEs (which have helped Americans and the American economy since the New Deal) can be restored to full vitality. If not, then their fate will be left in the hands of President-elect Donald Trump.
It is rumored that the Trump administration may be sensitive to the legitimate claims of the GSE shareholders whose property has been illegally taken. Perhaps Trump will release the GSEs, or perhaps, he will just dismantle the GSEs, and in the process, dismantle the dreams of so many Americans. Obama must take action now in order to insure the future of the GSEs and the middle-class. If Obama frees the GSEs, then his legacy can include: “Saved the American Dream.”