GAO Analysis Skeptical About Privatization of Fannie Mae and Freddie Mac - washingtonpost.com: "Privatizing Fannie Mae and Freddie Mac, the mortgage-finance companies seized by U.S. regulators last year, may be too difficult given the precedent set by the Treasury Department's financial assistance, according to a Government Accountability Office analysis.
'The financial markets likely would continue to perceive that the federal government would provide substantial financial support to the enterprises, if privatized as largely intact entities, in a financial emergency,' the GAO said in a report released Thursday. 'Consequently, such privatized entities may continue to derive financial benefits, such as lowered borrowing costs, resulting from the markets' perceptions.'"
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This is the opposite of "you break it, you bought it." We (the taxpayers) bailed them out, and now according to the GAO we have bought them.
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