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Tuesday, July 21, 2015 10:11:56 AM
It wouldn't jump start the economy. If anything, it would cripple the economy. Their cost of capital would increase without an explicit guarantee, and mortage rates would rise, and home values would fall.
It would send the housing market and economy into depression.
The best thing for the economy would be to merge them with FHA and keep them within the Federal Government. Unfortunately, that gives nothing to shareholders.
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