Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (16183)	4/22/2002 10:25:28 PM
From: plugger301	Read Replies (1) \| Respond to of 26752

NEW YORK, April 22 (Reuters) - Federal Reserve Chairman Alan Greenspan on Monday warned that perceived government backing for Fannie Mae and Freddie Mac may prompt those who trade their mortgage securities to take more risks, the latest wrinkle in the long debate over the housing finance giants. The Fed chief said if investors in their mortgage derivatives had a false sense of faith that the government would quickly ride to the rescue of so-called government-sponsored enterprises, that could distort markets. "The broader risks for financial markets and the economy result from the perception of government support for these corporations and the resulting implicit subsidization of GSEs. Subsidies, by intent, distort the normal balance of markets," the central bank chief said in remarks delivered via satellite to a conference sponsored by the Institute of International Finance in New York. OK all together now, what has been holding up the market? And where did they get the $$? Good so far, and what does it signify if things get tighter without having to use a rate hike? Yup, that's what I think as well.