The economic consequences of the failure of any one of the government sponsored enterprises - Fannie Mae, Freddie Mac and the Federal Housing Finance Board - could be great, according to witnesses at a House Budget Committee hearing on the housing GSEs last week.

Headed by Rep. John Sununu (R., NH), the committee heard testimony on how the rapid growth of the GSEs and the GSE-issued debt accumulated by financial institutions could impact the economy should any of the enterprises fail, or the economy takes a turn for the worse.

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