Jumbo sub-prime loans. Sub-prime loans which the value is more than Fannie Mae and Freddie Macs limits.
A sub-prime loan for $400,000 in 2005, which in California was common as dirt, would not have been bought by Fannie or Freddie. So, the total of sub-prime/bad mortgage would be way more than $200B. Probably even more than $700B. -----Original Message----- Now. If I follow your own numbers, both freddie and fannie bought, roundly, $200B in these securities. Yet they back trillions in mortgages. Roundly 50% of all american mortgages, in fact. So if the problem is, as you say, GSEs buying only $200B in sub-prime securities, and the ENTIRE sub-prime market is only 2% or mortgages, and the GSEs own 50% of all mortgages worth trillions, how could that possibly be the problem? And if $200B in sub-prime debt is the cause of the "crisis" why did we ask for $700B? And why do some say that $700B is only a few percent of the problem? How could that be if the problem is the GSEs buying $200B in securities? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| 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:271714 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
