They have to control them as they have proven they can not control themselves. They are neccessary in the houseing market and economy to be prooped up, fixed and made to work as they were intended. I think when banks start lending again to the people with good credit and money to put down, all the housing markets will start to come up except it may take a little longer in the over built condo markets.

Take a look at the "After the Bailout" story online in Forbes for some clues as to what the impact may be on the housing market. If anything the weekend take over has allowed Fannie and Freddie to continue to hopefully continue to make conventional mortgage loans. It appears the recent review of the books made the Government decide to move into this scenario. Here is the Forbes link http://www.forbes.com/home/2008/09/07/fannie-freddie-mortgag… The takeover beats a collapse of the financial markets or the doomsday scenario options in between the lines of the massive housing legislation that just passed Congress less than 5 weeks ago. Fortunately, real estate is local and the market will be what it is depending on buyer and seller behavior. What will be different is whether the flow of mortgage money will be stablized and improved or more restricted and regulated by yet another new Federal Agency. Good luck, Emily Medvec