After catching our breath, we here assess the impact of the midterm election on GSE reform.  That it will be the top item on the GOP’s to-do list is, we think, for sure.  If there were any doubt, the fact that Eric Cantor scores GSE reform as a $30 billion save in his fiscal agenda points to the potency of the issue in the broader debate.  We’ve long said that fiscal-policy considerations are the key criteria on which GSE action will be based, and we expect the Administration to meet the Republicans more than half way with a GSE proposal that is also seen as a net save for taxpayers.

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