Pimco’s Gross says GSE takeover should help housing
September 8th, 2008 | by admin |SAN FRANCISCO (Reuters) - Pimco’s Bill Gross said on Sunday that the U.S. Treasury’s takeover of Fannie Mae and Freddie Mac should ultimately slow the decline of housing prices and help the U.S. economy.
“By preserving the GSEs (government-sponsored enterprises) in current form — at least for now — and injecting sizable billions of dollars into the mortgage market, mortgage rates should come down, and the housing market will be healthier for it,” the manager of the world’s largest bond fund told Reuters.
He added that considerable uncertainty remains about the timing of any housing market turnaround and when the bottom in national housing prices will be reached.
(Reporting by Jennifer Ablan; Editing by James Dalgleish)
