Soccerfanyes

The Great GSE Meltdown: Market Adding Fuel to Fire?

Allowing FNM and FRE to go to zero will not eliminate the opportunity for financials to raise capital. On the other hand, it will require that financials pay a lot more attention to the true repayment capacity of borrowers. This whole financial meltdown has been caused by financial engineers living on the edge with leverage to earn the last penny for their companies and themselves. That foolishness has stopped for the good of all.