Q: Every time you’ve spent money, you’ve said it would solve the problem. What’s different this time?
Fannie Mae and Freddie Mac were off-balance-sheet conduits for the federal government designed to disguise the extent of the public debt taken on to sustain the housing market boom. They ought to have been consolidated on the nation’s balance sheet years ago.
Yet when they were finally nationalized, no immediate risk to their capital positions and access to funding was apparent.
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