Jun 26, 2010

Peter Orszag on the historical risk of GSE debt

On the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero.

~ Peter R. Orszag, soon-to-be-former Director of Office of Management and Budget, conclusion of the academic paper "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard", co-authored with Joseph Stiglitz, 2002

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