Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Greg Ip, today in the WSJ:

"A blanket deposit guarantee would certainly stabilize banks, but at a cost. It could draw funds from similar investments such as money funds that lack the guarantee. It could effectively turn every bank into a government-sponsored enterprise, as Fannie Mae and Freddie Mac once were. In the process, a key goal of the postcrisis regulatory push would go up in smoke: that the public should never again have to backstop the losses of private risk taking."