The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 1)
The Stoop (NYU Furman Center)
MARCH 4, 2024
One of the main reasons for this approach is that GSE borrowings to fund loans don’t directly show up as federal government indebtedness. 7 Additionally, GSE subsidies and privileges are crafted to largely avoid showing up as a federal budget expenditure, thus avoiding competing with other priorities for scarce tax dollars.
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