treasury department to take control over fannie and freddie , is it good for the real estate market!!!

As we all know fannie and freddy are one the biggest companies in the US.

The hold 6 TRILLION DOLLARS, YES THAT NUMBER IS CORRECT according to www.realtor.org .

half of the nation mortgage paper is owned by them!!!!!! and if the government takes over that will mean that the stock value of those companies for the stockholders will be basically wipe out!!!!!

BUT ON MY OPINION if that happens I think that we might get a good rally on interest rate drop because even tough the 10 year treasury note (tnx) has gone down , the spread is over 130% and the interest rates haven't drop as it should.

but when our government starts with the bailout. I would think that it will help us as Real Estate Professional in New york, Long island, California, Everywhere. because if interest rates drop even more and with the decline in home prices , we might see a better real estate market , or better activity report than expected!!!!!'

please let's hear everyone opinion.

Sincerely Remax Imperial
Long island Real estate company!!!!!!