Tuesday, September 9, 2008

Conservatorship Alternative

FHFA is explicit:
Conservatorship does not preclude receivership.

So when the CBO says that "the federal budget is on an unsustainable path", it would be prudent to question whether future administrations will follow through on Hank's bailout vision.

Odds are high that the bondholders will STILL take a haircut in the future.

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