A Comment About

Bailing Out Fannie and Freddie

July 15, 2008 - 12:11 am - by Arnold Kling
purpleslog
2008-07-15 13:47:16

“Wouldn’t mortgage insurance be required on those low-down-payment loans the GSEs acquired? Shouldn’t the insurance companies be taking the hit?”

They are. Check out insurers like MGIC from my hometown. They are burning cash reserves fast.