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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (29149)	2/24/2003 12:51:56 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

All roads lead to printing of money like nuts. There is no way out, it's just a matter of when. DAK

To: Jim Willie CB who wrote (29149)	2/24/2003 2:40:15 PM
From: energyplay	Respond to of 74559

Fannie is effectively a parrallel Federal reserve, and not under much control, if any. One thing to note is the actual money creation happens when the loan is originated - If no one wants to borrow or re-finance, (like Japan right now) no money gets created. Fannie and the rest of the system facilitates money creation by making it easy, profitable and low risk. Originating banks are supposed to asses credit quality of loans - before they sell them off ;-) I would like to again point out that what Fannie does leads to the double counting of debt. It can still be a house of cards, but recognizing this can gives us a clue as to when and which way the house of cards will fall...