Temporary solutions have a way of becoming permanent. The fate of Fannie Mae and Freddie Mac, the two "government-sponsored enterprises" (GSES) that stand behind much of America's housing market, is a case in point. The gses, which buy American mortgages from banks and other originators, bundle them into securities and resell them to investors with a guarantee, are stuck in a technocratic no-man's land. Their status has not yet been normalised after their first bail-out, but they may soon require a second. If they do, the administration of Barack Obama, which has been running them since 2009, will be largely responsible.
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