Fannie Mae and Freddie Mac—the Congressionally chartered mortgage giants that provide liquidity for 70% of all residential loans funded in the U.S.—are done. They have no friends in Congress and Republicans (and plenty of Democrats) blame them for creating the housing bubble.

Even their regulator at the Federal Housing Finance Agency, Ed DeMarco, thinks they have no future. Otherwise, he would never have pulled their shares off the New York Stock Exchange while refusing to answer questions about a reverse stock split. (It worked for AIG. Why not the GSEs?)

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