Nationalize ‘em then privatize ‘em. That’s Richmond Fed chief Lacker’s prescription for the GSEs. He doesn’t by Paulson’s plan to rehabilitate the mortgage finance giants in their present form.
Lacker aslo says the Fed does not have to wait for financial turmoil to die down before the Fed hikes rates, a stance he has taken before. A firm core PPI report today may drive that message home for the hawks on the FOMC.
