He done gone and wrote something very smart and equally depressing. Personally, I go for very smart and tremendously cheerful in my choice of reading and if wishing made it so, I would wish and write that Jon Henke is dead wrong in his arguments.
But of course, he isn't. He's identified the dynamic he discusses quite effectively. It will play out with Swiss watch-precision in the aftermath of any nationalization of Fannie Mae and Freddie Mac. And unless we find a way to break out of that dynamic, we will be left to lather, rinse and repeat the next time a similar situation rolls around.