The China Problem
Slate Money
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The Liquidity Problem With the GSEs
Lending to people who shouldn't get mortgages was in part why we had a financial crisis. But it almost seems like I don't know if it's accurate to say they've gone too far now and they're not lending. There's a liquidity problem here. Ultimately, the GSEs guarantee the loans. And so what happens when a homeowner goes into a rears is that the service that keeps on sending those payments, those mortgage payments to the GSES.
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