Oh I forgot to comment on this. Fannie and Freddie may have their name on the check, but it is my money they are spending. That makes that check much easier to write.
As far as that hundred million dollar bet about the nickel, it is a bet that the nickel will be paid, not that a particular person will pay it. Much easier to make that bet when Fannie and Freddie are going to back it with my money.
I already said something about moral hazard didn't I.
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