“The mortgage markets of America are on the verge of nationalization,” says Chris Mayer in the Rude Awakening.

The bailout of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) means two out of three of the nation’s GSEs are backed by the taxpayer. However, they remain publicly traded outfits beholden to their shareholders.

The question, then, is: What happens if Fannie and Freddie, enjoying the backing of the government, venture into riskier areas of consumer finance to boost earnings. Are we looking at the spread of nationalization beyond the mortgage market?