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Debate: Fannie Mae and Freddie Mac

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Should Fannie Mae and Freddie Mac exist, or be dismantled?

Background and context

NYTimes Room for Debate series on this topic

Fannie Mae and Freddie Mac were created to package and secure mortgage lenders' loans. Congress commissioned these two entities to package loans in a way that guarantees the purchaser the principle and interest back in whole. Congress commissioned the two entities to provide liquidity and stability to the loans. The government sponsored agencies also purchased some of these loans and included them as part of their portfolios. http://books.google.com/books?id=02oFhq78QjsC&pg=PA3&dq=fannie+mae+and+freddie+mac+2011&hl=en&ei=LiU1TuTHDsnZsgaDvqm5Ag&sa=X&oi=book_result&ct=result&resnum=1&sqi=2&ved=0CC4Q6AEwAA#v=onepage&q&f=false

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