Submitted by Lifeofthemind, Sep 5, 2008 12:06

Not to nationalize Fannie/Freddie but I have heard arguments for breaking them up into Federal Reserve region linked units. Any time the conventional wisdom says something needs help because it is "to big to be allowed to fail" we need to think of other answers. If each mini-Freddie or Fannie had to keep 70% of its assets invested in regional mortgages the system would not unravel because of a local shock.

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