How federal lending programs served as a big shadow stimulus

stimulus-ben-470x300Altogether, the government guaranteed some $584 billion in mortgages through federal agencies in 2010, and $1 trillion through Fannie Mae and Freddie Mac

By Nick Timiraos | The Wall Street Journal

It’s no secret Washington tried to prevent an even deeper economic collapse by launching a $787 billion stimulus program in 2009. What’s much less appreciated is how the federal government provided an economic boost of roughly the same magnitude through scores of federal lending programs.

A new paper published by the Brookings Institution estimates the economic impact of more than 150 federal credit programs—from mortgages insured by the Federal Housing Administration to loans guaranteed by the Small Business Administration.

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