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To: robnhood who wrote (157975)	4/1/2002 11:14:39 PM
From: LLCF	Respond to of 436258

Anyone notice this drivel??? biz.yahoo.com LOL, yea, this REALLY looks good....NOT!! They should probably keep their traps shut: <<The large differential between short- and long-term rates prevalent in the market last year was a primary reason for the huge growth in the agencies' derivatives portfolios. That's because Freddie Mac and Fannie Mae increased their use of short-term debt liabilities in 2001 in order to augment the profit margins derived from investing in mortgage assets, which have longer average lives than short-term debt. In doing so, the agencies had to increase their derivatives activity in order to synthetically lengthen the life of that short-term debt.>> Now, call me crazy, but this tells me their showing nice tasty spreads and probably earnings against losing contracts that will be written off later????? DAK