Fannie and Freddie will grow a bit and then become far more manageable from a size perspective. This is a very sound policy, if only to prevent a bail-out of mammoth proportions from having to occur again.
The government is putting taxpayer funds at risk to stabilize Fannie Mae -- another episode in a long-running legal scandal. There are no hookers, embezzlers and slush funds. Just laws, lobbyists and pay packages.