[AdamSelene235]

Still learning HTML....That was supposed to be:

The GSE's are acting as lenders of last resort. They are the primary reason the recession has yet to seriously impact consumer spending. If these opaque organizations were to fail, they would simultaneously take out the stock,bond and real estate markets.

When will the politicians have the courage to pre-empt this problem? If the GSE's implode it will be too late to fix things.

Other sources

Big Scary Monsters

'Fannie and Freddie Were Lenders': U.S. Real Estate Bubble Nears Its End

Fannie Mae Enron

[LakerCJL]

png for later reading

[Southack]

I wouldn't get too concerned over FNMA getting into trouble. Each package of loans that FNMA buys is insured at least twice by two different insurers with entirely unrelated pools of cash funds backing them, plus the assets of the homes, plus the cash flow from all of the mortgage payments that do come in, plus they can liquidate both good and bad loan packages instantly on the open market in NYC.

Unless unemployment shoots up past 7.5% and interest rates shoot up past 9%, the government wouldn't even have to step in to give FNMA a helping hand.

On the other hand, changing their accounting rules could easily change the rules in mid-game, and cause everything to fail. Thus, advocating FNMA changes is probably the riskiest of all paths to advocate.

But hey, I'm a survivalist with food stocks, water storage, guns, ammo, and a plethora of survival equipment/gear, so what have I got to fear from people killing the goose that laid the golden eggs? Bring it on! Go change the rules on FNMA. I'm prepared for people such as you taking absurd actions such as that.

Are you??