Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Todays WSJ on the implicit federal government guarantee, this one for the King of TBTF, JP MORGAN:

"Yet JPMorgan's show of strength, for many, exposed a weakness in the U.S. financial system. The bank and its largest rivals have become so big, their reach so extensive, that the government would almost surely step in to prevent their failure. That implicit guarantee encourages people and businesses to move their money to them in times of stress, creating a feedback loop that makes big banks bigger at the expense of their smaller peers."