“The specter of the most titanic intervention in the markets since Franklin Roosevelt started sewing the safety net has folks at the Cato Institute reaching for something strong.” See Bailout Raises Libertarians’ Market Value in the Washington Post.
Also from the Cato Institute:
Because of their quasi-governmental status, there is a market perception that Fannie Mae and Freddie Mac mortgage-backed securities and debt carry an implicit federal guarantee against default. Hence, the GSEs expose the federal taxpayer to an ever-increasing potential contingent liability that could ultimately cost tens of billions of dollars to rectify.
When was this written? A week or two ago?
It’s from 1997. See The Mounting Case for Privatizing Fannie Mae and Freddie Mac.