johnhaskell

Fannie & Freddie: Myth vs. Reality

this article would be more persuasive if it contained fewer factual errors. The GSE's either "are part of the government" or they aren't ... I'd vote for "aren't." And you can either say that F&F own senior CDO tranches (he describes them without understanding they are CDO tranches) or you can say "they don't invest in CDO's."

Finally, if their portfolio is sound and they are only taking mark to market losses which will be recouped later (same argument MBI and ABK make, by the way) why do they need to raise any real cash at all? Many companies have a negative net worth, but if you have actual positive cash flow you just keep on trucking. Your stock would not fall 40% in an hour.