Relevant:
- A Coming Bailout for the Federal Housing Authority?
- Maybe Federal Mortgage Guarantees Aren't Inevitable
- FHFA Head Says Fannie Mae and Freddie Mac Cannot Be Fixed
- Housing Bust 2? Subprime No-Down-Payment Mortgages Surge, "Shadow Banks" Dominate (+GOVERNMENT PICKS UP TAB)
- Second Housing Crisis? Another $1T in Mortgages Backed by Taxpayers
2008-08-03 — economist.com
It is not entirely clear why the core business of the enterprises—providing guarantees for mainstream (not subprime) mortgages—needs government sponsorship.
Also see another recent commentary article from The Economist on the same topic: When feds rush in.
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