Show Fannie Mae and Freddie Mac the door

Need any more evidence Uncle Sam must find a way to kill Fannie Mae and Freddie Mac?

Consider the latest: Freddie Mac made investments that would pay off if homeowners remain stuck in high-rate mortgages -- at the same time Freddie was making it harder for homeowners to refinance.

Fannie and Freddie are the failed mortgage companies that fell into taxpayer arms during the financial crisis. They failed because of risky bets just like this one, except of course that this one looks rigged.

The government has kept these troublesome twins on life support in part because Fannie, Freddie or the Federal Housing Administration guarantee the vast majority of mortgages being issued. Absent such guarantees, the housing market might collapse for want of buyers.

Although they're wards of the government, the Obama administration has relatively little control over Fannie and Freddie; their chief regulator can't be fired at will by the president. Freddie's overseer did recently put a stop to its practice of making bets against American homeowners, but $5 billion worth remains outstanding.

Washington needs to wean the nation from its dependence on government mortgage guarantees, even if that means costlier mortgages for home buyers. And it needs to drive a stake through the hearts of the two big mortgage vampires, which have already sucked a $150-billion bailout from taxpayers, who've covered their losses.