On Jul 12, 2008, at 12:37 PM, Jordan Hayes wrote:
> Doug writes:
>
>> A problem with this is that, as he concedes, the GSEs' bonds were
>> perceived as essentially obligations of the U.S. Treasury.
>
> It is a sticky situation, but there's always been a premium; and a
> GSE holder knows the difference between Freddie and Momma. It'll
> never happen, but it's fun to think about.
The price of credit default swaps for U.S. Treasuries rose yesterday, by the way. I had no idea such a thing existed.
Doug