Four Quick Points About Fannie-Freddie Reform
February 12, 2011 at 14:47 PM EST
(1) Why have an explicit guarantee? If TARP should have taught us anything, it is that there are implicit guarantees everywhere; it is better to be up-front about the fact that the government does provide backstops in times of crisis. (2) How to price the guarantee? Mark Zandi has a good explanation. The hard part [...]
