Are Fannie and Freddie doomed?

The following from a CNBC story:

CNBC Reports... Fannie, Freddie Cannot Exist in Current Form: Frank Rep. Barney Frank (D-Ma.), chairman of the House Financial Services Committee, said Friday that Fannie Mae and Freddie Mac should be eliminated as they stand now. "This committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance, that's the approach rather than the piecemeal one," Frank said. Frank made his comments during the committee's hearings on executive compensation.

I, for one, agree with congressman Frank on this issue.  It is simply wrong for the federal government to provide all the funding, either directly or through the Federal Reserve, when things are going poorly but to allow these entities to siphon off big profits for investors when things are going well.  We need to stop kidding ourselves that privatization of every business is in the best interest of the public or the institution for that matter.  I know all you Libertarians are starting to fume but our national security revolves around a healthy housing industry.  It is not prudent, constructive, or fair to let our housing industry hinge on the decisions of a private industry that cannot look beyond next quarters profits. 

We need a strong and viable secondary market for mortgage loans.  If the GSE's fail in that function, we will end up with the exact thing we have in the jumbo loan market now...a market near death and desperately needing life support.  Let's reorganize the bohemith's of the secondary market and do it without the goal of privatization.  Hell the taxpayers already own them!