Replies

To: Petronski

Mr. Chicken Little, pick up the red courtesy phone. Mr. Little, the red phone, please.

Given the GSE's debt to equity ratio of 40 to 1 they are essentially banks without a multiplier restriction. They are pretty much printing money.

Can you explain how to make such a system stable?

23 posted on 07/15/2002 9:51:39 AM PDT by AdamSelene235

To: AdamSelene235

Given the GSE's debt to equity ratio of 40 to 1

Do you mean to say they have guaranteed 40 times the value of their collateral? I find that hard to believe.

56 posted on 07/15/2002 10:52:52 AM PDT by Petronski

To: AdamSelene235

By the way, you wouldn't happen to work in the precious metals industry, would you?

57 posted on 07/15/2002 10:54:53 AM PDT by Petronski

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