Has anyone ever heard of a gentleman named James Lockhart?
Probably not!
Mr. Lockhart is the head of the Federal Housing Finance Agency, and he is now the overseer, man in charge of Fannie Mae & Freddie Mac. Should we be happy about this? Do you feel comfortable now knowing that James is in charge?
Maybe? Maybe not?
Let's try what should be of concern.
Just a few months ago James and Treasury Secretary Henry Paulson were telling us constantly that Fannie & Freddie were well capitalized. I live in Southwest Florida and I knew at that time that the foreclosures were going to continue for awhile, 12-24 months being my guess. That being said it's logical to assume, there's that word (assume) again, that Fannie & Freddie, the largest mortgage holders on the planet, were going to continue to experience rough going.
It would be difficult to believe that Mr. Lockhart and Mr. Paulson could not see the same thing.
However, this weekend things had deteriorated to the point that they felt the gov needed to step in.
So much for their crystal ball! This doesn't exactly instill confidence going forward.
Now, on the other hand;
While not a household name James Lockhart has been down this road before. He previously was selected to head The Pension Guaranty Corp. and straighten out problems there. He also spent some time at the Social Security Administration.
On the other hand;
Mr. Lockhart has been tightening the controls over Fannie & Freddie for a while now, but may be replaced by the next administration. That certainly does not give him much time or possibly power to get the job done. Does the term "lame duck" mean anything to you.
Okay, should we feel comfortable with the current takeover, and leadership. Frankly I don't, but all I can say right now is;
It is what it is!
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