The GSEs remain in this untenable position today, with taxpayers potentially on the hook for $6.3 trillion in mortgages. mortgages, and have received more than $190 billion from taxpayers, including a $3.7 billion request on Februfor a drawdown from the Treasury. Since being placed into conservatorship, Fannie Mae and Freddie Mac have become the primary buyers in the secondary mortgage market, financing nearly 90 percent of all U.S. What was supposed to be a temporary patch to the financial crisis has metastasized into 11 years of inaction toward a long-term solution, abusive GSE expansion, and a constant threat of another massive taxpayer-funded bailout. Of reforming or constructing alternatives to these behemoths, Congress handed the GSEs the largest taxpayer-funded bailout in American history and placed them into conservatorship. In 2008, after years of purchasing risky loans, government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac imploded and played a leading role in worsening the Great Recession.
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