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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (83906)	10/3/2000 10:47:44 AM
From: Knighty Tin	Read Replies (4) \| Respond to of 132070

Earlie, My best guess would be that a slowdown in real estate price growth would hurt them severely. If folks can't sell at a big profit, turnover will slow or stop, and origination fees will go down the toilet. And, like a shark, Fannie and Freddie have to keep growing new assets to keep eps on the upswing. They cannot grow on their base. The income from the base would remain stable while overhead produced little new income, thus killing eps.