Kicking “Monetary Cocaine”: Fannie, Freddie to Get the Shakes
FRB-Dallas President Fisher has called the FRB’s quantitative easing “monetary cocaine,” saying it’s not up to him to worry about how the market kicks the habit.  That’s tough love, a sentiment which bodes considerable peril for all of the GSEs.  Like other big fixed-income players, bond-market volatility does them no good.  Indeed, it could also put Fannie and Freddie back into rehab, given the nonexistent capital on hand to absorb interest-rate and/or market risk.

The full report is available to subscription clients.  To find out how you can sign up for the service, click here