I studied a lot about international economic development in my college days. In fact, my M.S. degree focused on international agricultural development.
Just the word “nationalization” scares me.
In those days, third world countries would often nationalize a company for the “good of the people.” Usually, the real reasons were politics and money; to silence a political rival (the company management) and milk the company for personal and political cash.
Companies usually tanked following nationalization, becoming a drag on the economy instead of an engine of economic growth.
After nationalization, the company’s goals became political, not economic.
My worry is that our political geniuses in Washington D.C. will soon figure out that they now control a company that controls 44% (?) of the mortgages in the United States. The politicos could soon use that power to their political advantage, for example by stopping foreclosures by Fannie and Freddie on their constituents, or some other shenanigans.
I’m leaning tonight towards the idea that in the future we should not allow companies to become so big that they become “too big to fail.”
The sooner the government denationalizes Fannie and Freddie the better.
We saw how just being a “government sponsored entity” led evenually to private and political corruption.
I fear the speed and depth of corruption we could see with a government controlled Fannie and Freddie.