Privatization would solve several problems associated with the current GSE model. It would eliminate the conflict between private shareholders and public policy and likely diminish the systemic risk, as well. Other benefits are that private entities presumably would be more innovative and efficient than a government agency, in that they could operate with less interference from political interests.
Bernanke supports privatization of GSEs to reduce systemic risk and improve efficiency.
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The economy needed help from Congress--if not from additional spending (on roads and bridges for example), then at least in areas such as retraining unemployed workers.
The economy needed help from Congress, if not from additional spending on roads and bridges, for example, then at least in areas such as retraining unemployed workers.
Banks are not going to lend out the reserves at a rate lower than they can earn at the Fed.
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