Can Wishing It Make Them Go?
With today’s Nocera column in the New York Times and Friday’s statement of opposition to the Obama plan from Senate Majority Leader Reid, powerful voices have weighed in against the consensus view that Fannie and Freddie can be made to disappear. In this report, we review the 2Q financials from the GSEs to demonstrate why, regardless of policy demands that the “failed” model be terminated, liquidating Fannie and Freddie will be a lot harder than conventional wisdom expects.
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