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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (24857)	10/27/2004 4:29:05 PM
From: ahhaha	Read Replies (2) \| Respond to of 306849

The Fed doesn't inject money into Fannie Mae, they simply buy Fannie Mae bonds - which supports their value and increases Fannie Mae "equity". Nope. FED FOMC open market operations in FNM's portfolio have no consequence for FNM's value. FNM's value is predicated on their efficiency to market mortgages, not on the notional amount encumbered by the mortgages. You should have learned that somewhere but I forget that you earn your living as a consultant in the real estate industry. Even more elegant is to have the central bank of Japan or China buy Fannie Mae bond and have the Fed buy the Yen or Renminbi These two actions have no connection and there's nothing in your sarcasm which implies that you have a clue about how these vehicles work. Perhaps the humorous thing here is that in your sarcasm you do hit upon an inadvertent truth and that is that in the Virtual Cycle such transactions are truly elegant. It is only perhaps and inadvertent because you have yet to show any degree of comprehension of the subjects to which you respond.