> gg wrote: > > Fannie & Freddie are prevented by law from making or buying sub-prime loans. >
Ah, I've now read the Wiki and it's horribly misleading. Fannie and Freddie are prevented by law from buying or guaranteeing sub-prime. As the wiki states they were able to bend the rules to buy "safe" low-doc loans that were "near-prime". But the bottomline is that Fannie and Freddie neither made nor guaranteed any significant percentage of sub-prime. And they didn't "fuel" them. Think about it - here's what the wiki says: "As of November 2007 Fannie Mae a held a total of $55.9 billion of subprime securities" $55 billion???? Less than a year ago??? That's hardly "fueling" anything. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:271658 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
