http://www.arnoldkling.com/blog/richard-epstein-on-freddie-fannie/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 00:12:22 +0000 hourly 1 https://wordpress.org/?v=4.0.32 http://www.arnoldkling.com/blog/richard-epstein-on-freddie-fannie/#comment-93317 Sat, 27 Jul 2013 18:50:56 +0000 http://www.arnoldkling.com/blog/?p=1554#comment-93317 I respond that out of soon coming credit and financial crisis, the fiat money system will be replaced by the diktat money system wherewhere diktat serves as trust, medium of exchange, wealth and power. Liberalism was characterized by full faith and credit in the world central bankers. Revelation 13:3-4, foretells that Authoritaritarianism will characterised by worship of the Beast Regime and its nannycrats. And Revelation 13:5-18, communicates that it will also be characterized by worship of a New Pharaoh and a New Prohpet.

]]> http://www.arnoldkling.com/blog/richard-epstein-on-freddie-fannie/#comment-91198 Sat, 20 Jul 2013 17:17:29 +0000 http://www.arnoldkling.com/blog/?p=1554#comment-91198 Prior to 2008, a large percentage of Fannie and Freddie’s stock was held, I believe, by financial institutions. IE, traditional banks were to varying degrees crowded out of the prime/conforming mortgage market by F&F’s low cost of capital and minuscule capital requirements, so holding equity in F&F was a way for those banks to still make a buck off traditional mortgage lending. In fact, I think the risk-weightings in effect at the time for calculating risk-based capital requirements gave F&F’s shares favorable treatment relative to other equities (I could be wrong about that; it’s been a while). I wonder if that’s still the case today. Probably not.

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