Found an article in the economist referencing the possible repercusions of a GSE bailout. It's a great article and the most important thing in it is
the last paragraph.
In the end, the turtle at the bottom of the pile is the American taxpayer. But that suggests that, if Americans are losing money on their houses,
pensions or bank accounts, the right answer is to tax them to pay for it. Perhaps it is no surprise that traders in the credit-default swaps market
have recently made bets on the unthinkable: that America may default on its debt.
From the economist
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