[Red Jones]

i don't understand financial stuff so much; But FannieMae I understand insures (underwrites) the large bulk of home mortgages, but I don't get exactly what the chart portrays. It means there's been a massive increase in mortgage debt? and this mortgage debt is currently financing consumer spending. Please spell out potential problems. I'm puzzled that the news said that fanniemae and freddymac should be private organizations? what is really happening?

[AdamSelene235]

But FannieMae I understand insures (underwrites) the large bulk of home mortgages

If you can articulate why banks should have multiplier restrictions, it should be clear why the GSE's are dangerous. Some interesting links.

Big Scary Monsters

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

Fannie Mae Enron

[superiorslots]

Quote: It means there's been a massive increase in mortgage debt? and this mortgage debt is currently financing consumer spending.

One reason our economy has been doing so well is people are taking out equity loans and buying cars, boats vacations. However this cannot go on forever.

I know 2 mortgage brokers who have been in the busines for years and they can't believe the amount of people who upgrade to larger homes with little or no equity in their old homes because they spent it.