From AOL.COM:
… “Mortgage insurance is the legitimate function of a government agency, especially when the private sector has collapsed,” [George] Soros notes. “A mortgage insurance entity should be run as a government agency.”
“But mortgage financing should revert to the private sector. This would get rid of a business model that has failed.”Because the GSEs extended their activities from insuring and securitizing mortgages to building highly leveraged portfolios of securities by taking advantage of their implicit government backstop, they profited from the growth without bearing the risk of collapse, Soros notes.
“Heads they win, tails you lose,” he says…
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