St. Louis Fed Economist: Let Mortgage Mess Resolve Itself

"As Congress returns from a July 4th recess to again consider a sweeping housing and mortgage reform package that would establish a new regulator for Fannie Mae (FNM: 15.00, -20.13%) and Freddie Mac (FRE: 10.66, -26.48%), as well as allow the Federal Housing Administration to endorse up to $300 billion in troubled mortgage debt, an economist at the St. Louis Fed is warning that government intervention might end up doing more harm than good."