Jim Rogers Speaks the Truth about Fannie Mae and Freddie Mac

Here is an alternative view of the mortgage market giants Fannie Mae and Freddie Mac by Jim Rogers, CEO of Rogers Holdings.

In this piece, Mr. Rogers discusses why Fannie Mae and Freddie Mac should not be bailed out by the government and makes an argument that they should be allowed to go out of business.

You hear all the time that these institutions are critical to the mortgage and real estate market because of their positions and dedication to buying on the secondary market. However, Mr. Rogers argues that they have only been seriously important over the last 10 years and previously they held a relatively small position in the market. Allowing them to close their doors, will open up the major players that supplied the markets until their dominance emerge.

Mr. Rogers got extremely frustrated with one of the interviewers and actually said that if she believes Fannie Mae is a solvent organization, then I urge you to look at their balance sheets or get a new job.

Interesting video, what are your comments? Should Fannie Mae and Freddie Mac be allowed to go out of business? Will this help or hurt the American economy?