Government Sponsored Enterprise

(redirected from Government Enterprises)

Government Sponsored Enterprise

A privately held or publicly traded company created by the U.S. Government for some purpose thought to benefit the American economy. For example, Freddie Mac was originally a GSE created to encourage homeownership among middle class and working class Americans. Because it is "sponsored" but not owned by the government, GSE stocks carry higher risk than, say, Treasury securities, which are backed by the full faith and credit of the United States. However, GSEs have an implicit guarantee that the government will not allow them to fail. Indeed, when Fannie Mae and Freddie Mac collapsed in 2008 they almost instantly received federal assistance.
References in periodicals archive ?
Chief of the ruling National Council for Peace and Order (NCPO), General Prayuth Chan-ocha, has announced that government enterprises would be grouped to enable those making profits to lend increased support to other tasks while those with low income or suffering losses will be able to rely on themselves.
Before leaving the list of efficacious government enterprises, one should not miss the most obvious and proud State ability, namely, the exercise of killing large numbers of people in short periods of time within basically stationary geographical boundaries.
They have become advocates for greedy privateers, so completely dedicated to the worship of profit that they would turn over all government enterprises, from auditoriums to zoos, to Big Brother entrepreneurs.

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