Rajan's analysis of Fannie and Freddie is deeply flawed: the idea that they where a driver to pushing the private sector to embrace subprime is a disproven idea: the number of so called subprime loans bought by the twins had a default rate of 3%. Banks had a rate of 6%. Private label MBS had default rates of 25%! Insisting that this is cheifly government failure is to ignore the greater market failure
— Dec 23, 2017 08:42AM
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