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Well, if the FDIC has explicitly guarantee Fannie and Freddie debt then the common stock of these two GSE will survive. Reason, Fannie and Freddie will have the ability to issue debt to pay for any contigency. There is no moral hazard.
Aug 28 09:00 am
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All Comments by ArchDukeFerdinand »Fannie/Freddie Rally: A Product of Fed Intervention [View article]