Some thoughts about GSEs

The government-sponsored enterprises (GSEs) are a group of financial services corporations created by the US congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the captial market more efficient and transparent. (defined by Wiki, but it explains most of it. lol ^-^ )

Somehow GSEs become a large issue recently, actually the argument of the existence of the GSEs has never stopped ever since they were created.

I just wanna list some of my opinions:

Personally, I think the U.S government formatted the GSEs with its best wish, government hopes the GSEs can be used to enhance the flow of credit to certain economy sectors. And the GSEs did contribute a lot at certain level. However, I think the GSEs should not be continued existence for the sake of the whole economy and society since their existence are not neccessary.

The GSEs are seemed to be necessary at one point because the market sectors are not efficient enough. However, I believe only free economy can bring us the true blossom, while the government intervenes can only bring unfair competition. My assumption is even the GSEs enhance some market sectors in short term, but it is harmful at long term of view. Free market can enhance those sectors too, even it is much slower, but it brings true competition and it is less risky for the economy even though they have the capability to perform better than normal enterprises.Nevertheless, although the functions of GSEs cannot be achieved by wholly private or wholly government enterprises respectively, but they are achievable by the combination of wholly private and wholly government enterprises.