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They didn’t “sell them to the government”. However, the Fed was actually a large purchaser of MBS if that is what you’re referring to.
by bequanna 4y ago
They didn’t “sell them to the government”.
However, the Fed was actually a large purchaser of MBS if that is what you’re referring to.
- blindriver 4y agoOkay it's technically not a part of the government, but it's a Government Sponsored Entity with public ownership. All mortgages bought by them have an implied guarantee by the US government. So they did sell them to "a government-sponsored entity and the US government has an implied guarantee to pay any defaults."