(08-07-2018, 01:08 PM)jj82284 Wrote:

(08-07-2018, 08:06 AM)mikesez Wrote: "Central pricing of risk for social goals" describes both FDIC and unemployment insurance, both of which are solvent.  It also describes Social Security and Medicare, which are less solvent but still unlikely to collapse in flames the way Frannie and Freddie did.
It is risky but when coupled with the right regulations and social norms it can work.
Fannie and Freddie were allowed to get way too big compared to their original purpose, and no one in government stopped that in the short term because what they were doing was very lucrative for everyone.

The had the government not bailed out the financial institutions then we would gotten a glimpse as to how solvent fdic was.  

As for "less solvent" we're facing an imminent sovereign debt crisis with North of 150 trillion dollars in unfunded liabilities.  That's pretty much the dirty part of the toilet paper.  

"If only we got the mix right if only the right people"  

Your comment illustrates that central pricing of risk fails because there is always a shortage of political will to abandon good intentions no matter how stark the fiscal reality.