Sen. Corker’s “About Face” on GSE’s

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From 2013 ….. Corker-Warner bill “winds down Fannie and Freddie over 5 year period”

Last week….”short the GSE’s”

Finally today……a much more subdued (docile?) Corker talking “reform” and the GSE’s eventually “coming back out into the market” in a “utility” type format


Corker has finally come to terms with what we have said all along…..we cannot eliminate the GSE’s. We can’t. No bank in its right mind will lend to an individual person for 30yrs at 4% without the GSE backstop. They just won’t.

Corker actually used the word “utility” to describe his vision of the GSE’s. This is HUGE. Why? It is the same type of reasoning both Ackman and Berkowitz have been using the describe their anticipated function of the GSE’s post conservatorship……

Big progress folks….

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