Comments From Meredith Whitney, Wall Streets Hottest Bank Analyst
Posted By thestatedtruth.com on December 28, 2009
Mortgage Anxieties Mean Limbo for Fannie and Freddie ………..Fannie Mae and Freddie Mac, which buy home mortgages from banks and package them into bonds sold to investors, have been bailed out with $1.5 trillion in direct and indirect government aid.  The approaching withdrawal of Fed support in the form of the mortgage-bond purchases risks a very, very scary situation, said Meredith Whitney, founder of Meredith Whitney Advisory Group LLC in New York.  Mortgage rates would soar, endangering the economic recovery, if private buyers failed to step in to buy the companies’ debt, she said.  The Fed has been the only buyer in the market, Whitney told Bloomberg Radio in an interview. If they pulled back from the market or stopped buying from the market, we think there’s an asset collapse here.
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