How free market are you?

[bassmangrammy]

The problem with bailing out the GSEs is that the stockholders benefit at the cost of tax payers. There are two options that work: split the 2 GSEs into 18 or 20 different publicly held companies so the $5 trillion is spread out further and lower leverage can be achieved. Or when they go bankrupt (i.e. virtually know common stock value), the government can make them actual government agencies. They dual-handedly make the mortgage market liquid, and it's way too risky to have all of that market making power in the hands of two firms.