Sunday, September 07, 2008

USPS, SSA, DMV - Meet your New Friends Feddie and Fannie

Pseudo-private firms Feddie Mac and Fannie Mae have been seized to "rescue" the mortgage industry. This has a very scary feel to it, I am somewhat comforted by the fact that these institutions were never really private firms to begin with, so on the margin I don't know how much damage they can really do. My bigger concern is that future downturns in the business cycle will require policy makers to "nationalize" something.

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