Rereading that sentence using advanced technology such as my eyeballs and plain English semantic analysis, I think what it says is:
"Quasi-Government organisations were unbeatable in the segment of mortgages that made sense, so truly private ones, to pretend that they were better, had to create a market of mortgages that made no sense".
And that despite the fact that Fannie and Freddie were actually private institutions that relied on corruption. Imagine a genuine government bank -it would have wiped the floor with those offering insane salaries to their top managers. "Few can believe that suffering, especially by others, is in vain. - Galbraith"
Imagine a genuine government bank -it would have wiped the floor with those offering insane salaries to their top managers.
I don't think you have to imagine one: just look at what the Scandinavians do - or used to do until the politicians were browbeaten into thinking this was "unfair" competition to the private sector....aided and abetted by EU directives, unless I am much mistaken..... "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
As now of course private banks get this subsidy as well, one might rethink the idea. Der Amerikaner ist die Orchidee unter den MenschenVolker Pispers
Fannie and Freddie were privatised in the 1960's!!! A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
