Half measures

The US government is unfurling lots of plans to buttress Fannie Mae and Freddie Mac - but they’re more hospice care than cure. The measures announced on Sunday evening were meant to head off a rout in the government-sponsored enterprises’ stock and debt when markets open on July 14. They have merit, but are only half-measures. If the GSEs are to survive - and massive problems in the bank and housing sectors are to be averted - the US needs to provide explicit backing. The Federal Reserve has ope...