ss01

Fannie and Freddie Get a Little Breathing Room

1. It's solvency and leverage -- not liquidity -- that's the real issue.

2. I really don't see why more leverage on a small increase in equity is a good thing given the above.

3. They both wrote off billions and admit they have billions more to write off.

What am I missing that would suggest that that they are soundly managed and should be entrusted with more funds to manage makes the slightest sense? This is just more money for a bailout of lenders as far as I can tell.