The Feds now pretend they don't own the GSE-s, coz that
would put US national debt at 130% of GDP. So, the
Fed "supports" FNM/FRE MBS, but their debt is in the Caribbean
FNM/FRE stock trades at 30c on OB.
Funny. Ya, they are a major, major addition to our national
debt.
The question is, how much longer can they keep S. away from the F.?
I don't know the answer. So far so good. Pedaling along with
AAA country rating. It's good to be in charge of the ratings
game, while we shuffle crap around - monetize some, put some
onto the people (national debt), hide some crap in the
Caribbean, while trying to blow the asset bubble back up through
printing. -NG-
While this derivative story is horrible, there is some truth
in the statement that it does not really add to the total
systemic debt, except, maybe, some international positions.
It just enhances both bubbles and meltdowns.
That is by no means to say the situation isn't horrible -
the debt level is pretty much without precedent on it's own!
What, 4x GDP, 5x GDP? Both here and in Britain... |
