Fannie Mae (FNMA) and Freddie Mac (FHLMC) are the "government sponsored enterprises" or GSE's that created a housing finance machine for the modern world. By the end of 2008, these two GSE's owned or guaranteed mortgage debt equaling 87% of all U.S. Treasury marketable debt or 78% of all nonfinancial corporate debt. Nobody seemed to care, because "housing prices never go down." Only they did, and suddenly the housing finance machine was broken. What was the role of Fannie and Freddy in the financial meltdown? What are the options for the future of the GSE's? Briefly summarize and critique an article that discusses a plan for U.S. housing finance in general and the role of government in particular.