US : Housing system needs government support

Read Also, this small note from The Economist :

Fannie Mae and Freddie Mac continued to cause headaches in Washington. Tim Geithner, the treasury secretary, speaking at a conference on housing-finance reform, gave warning that the transition must not be abrupt. He said the government’s role in the mortgage market should undergo “fundamental change” but was quick to stress that there should still be a “carefully designed” government guarantee for mortgages. The two failed giants, along with the Federal Housing Administration, currently support 90% of new home mortgages.