Investing
Geithner And The Odd Sovereign Debt Confusion
Published:
Last Updated:
Treasury Secretary Tim Geithner for some reason found it necessary to explain to a member of Congress that the debt obligations of Fannie Mae (FNM) and Freddie Mac (FRE) were not sovereign obligations of the US government. It was a puzzling comment because there has been no assumption in the market that Fannie and Freddie enjoyed such a vaunted status.
In a letter to Rep. Scott Garrett, Geithner wrote that the government’s obligations to the two firms “is crucial in helping to stabilize the housing market and the overall economy.” That commitment is obvious as well because a withdrawal of support at this juncture would would almost certainly cause the collapse of Fannie and Freddie which in turn would throw the mortgage markets into turmoil.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
