US Government To Bail Out GSEs?

For years politicians and financial pundits have repeated the baloney that government-created Fannie Mae, Freddie Mac and the Federal Home Loan Bank are NOT backed by the US taxpayer as banks are. That sounded fine when the going was good, but now that cracks have begun to appear the government is whispering about "receivership" and "systemic risk". Get this; ""The potential for systemic risk arising from the GSEs' size and their central role in mortgage markets combined with the difficulty of managing the risks inherent in a large mortgage portfolio raise fundamental questions about the value they add ... relative to the risks their current operations pose," the White House said Feb 7th.

A new regulator is called for with "expanded enforcement authority, the ability to place the businesses in receivership and "unambiguous authority" to set risk-based and minimum capital requirements, according to the budget document".

This all sounds like the too-big-to-fail reasoning we hear when the establishment has its tail in a crack. If you read my post from yesterday and put it together with this announcement, it seems the administration is preparing us for a massive bailout of the GSEs. What other conclusion can one draw? If the government or its agency will be the "receiver" with "unambiguous authority" doesn't that spell BAILOUT? After all, who could possibly shore up this multi-trillion dollar system but the government, which is what alot of people warned about going into this mess.