Fannie and Freddie and Taxpayer Risk

Lynne Kiesling

The headline on this article in today’s USA Today says it all:

Taxpayers take on trillions in risk in Fannie, Freddie takeover

3 thoughts on “Fannie and Freddie and Taxpayer Risk

  1. 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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