Written by Mike Brownfield

Four years after home values in America plummeted, fears over America’s housing market remain. In testimony before Congress yesterday, Federal Reserve Chairman Ben Bernanke cited “the continuing depressed condition of the housing sector” as one of the factors behind America’s sagging economy. In response to the poor market, the White House is reportedly considering a repeat of the historically bad decisions that contributed to the mortgage meltdown rather than pursuing a much saner course: eliminating Fannie Mae and Freddie Mac.

In a town hall last week, President Obama remarked that “the continuing decline in the housing market is something that hasn’t bottomed out as quickly as we expected.” So what’s he planning to do about it? The Wall Street Journal reported Monday that the White House may have “taxpayer-owned mortgage giants Fannie Mae and Freddie Mac relax their rules for loans to investors” as one way to tackle the housing slump.

For those with... http://blog.heritage.org/2011/07/14/morning-bell-time-to-end-fannie-and-...