These deals where the government insures things, or sets up a quasi-business entity to insure things, are not really like commercial insurance.
Because they're almost always set up to "insure" something that normal insurers don't want to insure - because it looks too risky.
The politicians praise the up side -
now people can buy homes!
No longer will they be tortured
by actuarial gnomes.
As Barney Frank said: "I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing..."
Rolling the dice
is all very nice
until, instead of baby getting a new pair of shoes,
you simply and suddenly lose.
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