The problem is not within the GSE's...it was the deregulation of Glass-Steagall along with government requiring more affording housing for people who are collecting welfare...so the banks (generalizing the category) got creative to a point that it didn't work and now they're covering their tracks by blaming it on the GSE's after using them to bailout the banks for their mistakes and now using the GSE's as a scapegoat...until they've come up with a solution including the shareholders there's no proposal that will be looked at as a comprehensive resolution...fixing portions of the past government mistakes will not deter another bubble...this is what it is... they're not fixing HOUSING they're fixing housing so government can't meddle with it again...the GSE's are already fixing themselves via the government regulator (FHFA). All they need to do now is figure out a way to take on people with welfare poverty level to afford housing without causing a high risk to taxpayers...that's where the capital buffer issue is and who will back it up...by mixing up high risk portfolios with less risky portfolios then turn around and selling investors through the common securitization platform these portfolios are like covering the gap between rich and poor...it's a way of taking from the rich and giving to the poor by giving housing they can't afford to begin with...you can't just cut off the rotting leg from diabetes and throw it into the incinerator, so the government is trying to find a cure for the disease is what it is...kind of a blunt way to put it, but it is what it is...
DON'T STEAL, THE GOVERNMENT HATES COMPETITION!
