Back in 2008, the US government's takeover of troubled mortgage giants, Fannie Mae and Freddie Mac, two agencies established to reduce risk in the housing market, was hailed by many as a crucial step in helping to solve the pain of the subprime housing crisis roiling America. Fueled by the global financial crisis, the nation had a glut of vacant homes for sales, soaring foreclosures and rising unemployment. In these dire circumstances, the government's control of Fannie and Freddie moved forward, placing them in government conservatorship, and giving Washington 100 percent of their profits. It was a radical move. The government, in effect, had now become the nation's mortgage lender in a marketplace now estimated at $12 trillion.

Today, with the US Federal Reserve scrambling, at least in theory, to take control of a massive balance sheet and tighten monetary policy, the "nationalization" of Fannie Mae and Freddie Mac, still in place, raises disturbing questions for the viability of the US housing market, according to DICK BOVE, chief financial strategist at Odeon Capital Group. "This is the most outrageous and unbelievable situation I have ever seen in my 55 years in looking at companies," BOVE says in this episode, castigating the government for undermining free market values and damaging the future prospects for home ownership. BOVE contends that "dirty games" were played at the highest levels to help preserve Fannie and Freddie under government control.

BOVE is joined on this episode by MAT VAN ALYSTYNE, co-founder, Odeon Capital Group, and journalist JOHN AIDAN BYRNE. The trio will also examine broader issues in the housing market, in particular, whether it can continue to move forward with the same level of strong blockbuster sales and rising prices.•  VAN ALYSTYNE AND BYRNE see a continuation in the overall housing activity citing data and anecdotal evidence. Bove disagrees. "The rapid rise in money costs," Bove writes in a research note,  "combined with the exit of the Federal Reserve from the markets will make housing purchases un-affordable so that demand cannot be actualized."