Grip tightened on Fannie and Freddie

James Lockhart, director of the Federal Housing Finance Agency, said: "I do not support nationalisation." But he added: "When you add up the commitment of the US government . . . it is well over $1,000bn. That is quite a commitment."

They are prancing around the fact that if the GSE liabilities become explicit, the national debt rises by $5T or so. This is rather material given that the US is entering into pre-hyperinflation balance sheet territory.