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July 15, 2008

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Jim Gatti

As early as the 1980s academics and segments of financial regulatory community began calling for complete privatization of Fannie and Freddie, arguing that they were receiving an implicit subsidy from taxpayers. F&F always managed to deflect attempts to do so by arguing (incorrectly as numerous studies showed) that they were essential for a healthy housing sector. For a good history see Lawrence White's paper. http://www.cato.org/pub_display.php?pub_id=2467

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