Benn Steil


A graphical take on geoeconomic issues, with links to the news and expert commentary.

Government Sponsored Enterprises

by Tuesday, August 26, 2008

Financial markets believe that the game is up for Fannie Mae and Freddie Mac, the Government Sponsored Enterprises that provide or guarantee half of the mortgages in the United States. As our graph shows, there has been a sharp spike in the implied probability of GSE bankruptcy. Are we prepared for a GSE collapse? How will the mortgage market continue to function? Read more »