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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: techreports who wrote (3021)	2/26/2002 12:36:38 AM
From: LauA	Respond to of 4690

According to Munger they were very concerned about the amount of leverage coupled with unhedged risk in Freddie and Fannie. At the Wesco meeting, Charlie specifically identified their earthquake exposure. Apparently neither requires EQ insurance when they accept a loan. They are now such huge players in places like California that another Northridge quake could wipe out their equity. OT. In a few years, when interest rates go back up to a more 'normal' level, watch for the effect of negative amortization loans on consumers who habitually borrow to the max. Who will end up with all those no-equity homes?