Creditworthy governments always come to the rescue of large financial institutions, particularly when many are in trouble at the same time. Since institutions do not come bigger than Fannie Mae and Freddie Mac, the rescue announced by the US government over the weekend was a foregone conclusion. That these were “government-sponsored enterprises” made it a certainty. Since these institutions have been financing some three-quarters of US mortgages, the socialisation of the risks of housing finance is also close to complete.