First it was Bear Stearns, now Fannie and Freddie. What's next? Conventional wisdom says "You broke it, you own it". Let them figure this mess out without my tax dollars! Sounds good, but it's not practical.
But is this good, bad, or ugly for those of us in the CRE market? I'd say it's not only good, it's vital. Freddie and Fannie hold more than a third (35%) of the nation's multifamily mortgage debt and 9% of the outstanding commercial and multifamily debt. They have been help keep the apartment sector afloat while other sectors have hit the skids.
I am sure the price will be high but what's the alternative? You know the proverbial cross hairs...we're in them. Whatever the short term stop loss measure, the political fall out, and umbrage on both sides of the aisle, we can't let this institution fail. Without a doubt failure is a price no one can bear.
