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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (303015)	10/1/2002 3:03:20 PM
From: Skywatcher	Read Replies (1) \| Respond to of 769670

CRISIS IN US! "It was announced on Monday that Fannie Mae's duration mismatch had reached a record level of minus 14 months (in other words, the maturity of its liabilities is 14 months longer than that of its assets), compared with the six months that was thought to be the maximum allowable under its risk management system. This poses a serious risk if interest rates stay low, with the yield curve positive -- especially if the Fed cuts short-term interest rates again, for example. In that event, Fannie Mae's liabilities will carry a higher cost than its assets yield, and it will have an operating loss, which -- because of its excessive leverage -- could quickly wipe out its capital." CC