What Does It All Mean For Average Consumer? Nothing

A question I keep being asked today: So, this is complex stuff, what does it all mean for the average consumer?

The orthodox thing to do is mutter something about lower rates, making it easier to get loans, etc. The truth, however, is that it means nothing to the average consumer tomorrow — and that’s the problem.

Not because bailing out Fannie/Freddie was supposed to be some panacea that would make rivers run with honey, etc., but because we consumers are bad with things that don’t affect us immediately. The trouble with the Freddie/Fannie move is that it is seismic, like tectonic plates shifting, with its impact likely to be felt — in the dollar, in credit markets, in government spending, etc. — only over the coming months and years. Most people will have lost interest long before the inevitable impact is felt in rates, the dollar, etc.