New Plan for Freddie / Fannie
Wednesday, July 16th, 2008found this fantastic video by reading this post in Noah Rosenblatt’s Urban Diggs blog (great blog about NYC real estate that I read quite a bit). Bill Ackman is proposing a new plan to solve the Freddy / Fannie problem and bring liquidity back to the market. This solution is not via a government bailout, but rather proposes a balance sheet restructuring (basically converting their debt to equity, in order to affect the crazy D/E ratio - currently at 129:1 - Yikes!!!). I am not going to rehash Noah’s post and the video - they both do a great job explaining it. Check it out!
