My understanding…
“Implicit guarantee” = The government does not explicitly commit to backing the GSEs, but markets assume it would intervene to prevent failure. This was the case before the 2008 financial crisis when investors believed the government would rescue the GSEs if…
— Lance Lambert (@NewsLambert) May 27, 2025
1. Trump plans to push to end Freddie Mac/Fannie Mae conservatorship (which has been ongoing since September 2008)
2. Trump signals to the market that the Feds would intervene to prevent a Freddie/Fannie failure, but won't codify it into lawhttps://t.co/WzSelYK4tg
— Lance Lambert (@NewsLambert) May 27, 2025