Jun 15, 2019

Bethany McLean on the risk of a second GSE crisis

Fannie and Freddie, with their over five trillion dollars of securities outstanding, are operating on next to no capital.  If there's a sudden shock to the system, if interest rates go up, if they suffer a loss, taxpayers will have to foot the bill again.  And yet that risk is still there.  And it's a total example of government dysfunction that we've had seven years to figure out this problem and we've done nothing.

~ Bethany McLean, PBS interview, October 22, 2015

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