Firmer Fannie and Freddie

Rather than waiting to pass housing finance reform, which is impossible, why not merge Fannie and Freddie in the meantime? Both firms do the same things — buy loans and securitize them — are regulated by the same agency, are in receivership, are undercapitalized, and are owned by the same entity, you and me! Merging them would result in reduced administrative and regulatory expenses and increase liquidity of the merged firms’ bonds.

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