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To: philman_36

Freddy Mac had been a private corporation since the day it was created.


45 posted on 09/25/2008 10:38:29 AM PDT by Pelham (Save the starving billionaires)
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To: Pelham
Freddy Mac had been a private corporation since the day it was created.

Assessing the Public Costs and Benefits of Fannie Mae and Freddie Mac from The Congressional Budget Office May 1996 (some of the other article is almost identical to the article in this link as if the author might have used it as a source...as in see source #32)
The lawful, but unbridled, advance of shareholder interests at the expense of taxpayers, however, is an essential and inescapable consequence of the choice of GSEs as a means of delivering a federal subsidy to borrowers. It is part of the price of using GSEs as an instrument of public policy. Not least, it is a factor to be weighed in any decision to continue that practice or to end it by privatizing Fannie Mae and Freddie Mac.
I guess you should notify the CBO of your factoid.
One question though, do private corporations deliver federal subsidies?

51 posted on 09/25/2008 4:03:32 PM PDT by philman_36
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To: Pelham
Some additional reading you might enjoy...
REINVENTING THE GOVERNMENT CORPORATION
Some federal government corporations are wholly owned by the government and are clearly state actors, resembling ordinary agencies in many ways.{11} Others, however, are owned wholly or partly by private persons.{12} These mixed-ownership and private corporations enjoy[ *548] a combination of federal and private powers and obligations, and therefore may not be state actors in a constitutional sense. Thus, they may be less accountable for their actions even though they are creatures of a national policy.

Ship...In the abstract, FGCs seem to promise an alternative that everyone, from fiscal conservatives to democratic socialists, might find attractive.{75} FGCs conjure up an image of business efficiency as opposed to the traditional bureaucratic cabinet department. Proponents of small government may welcome the introduction of an element of private control into most realms of public administration as a means of preparing for the privatization of federal functions. Democratic socialists may view wholly or even partly owned government corporations as a means of capturing the rents and profits from public activities or natural monopolies for the benefit of the public fisc.

52 posted on 09/25/2008 4:21:22 PM PDT by philman_36
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