3 thoughts on “Fannie and Freddie and Taxpayer Risk”

  1. John Thacker

    Of course, taxpayers had already taken on the risk. No one (well, not many) was complaining when the implicit guarantee was lowering mortgage rates. They might have pretended that there wasn’t a guarantee, but attempts to spell that out more clearly, to shrink or regulate the pair (such as the Administration tried in 2003) were all frustrated by Congressional allies. Now the bill’s come due. Of course, it could be repudiated, but that would be even worse.

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