The Treasury Department has said it hopes to never use its recently acquired authority to stabilize troubled mortgage finance giants Fannie Mae and Freddie Mac. But a Wall Street Journal survey found that economists think there is a good chance that the government will indeed have to jump in with cash.
From the Wall Street Journal, via the Big Picture website:
On average, the 53 economists polled in the survey put the probability at 59% that the Treasury Department will have to step in to bail out Fannie or Freddie.
"Blank checks almost always get filled in and cashed," said Stuart Hoffman of PNC Financial Services Group.
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