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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (26080)	2/8/2005 5:22:38 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

No.Calf real estate conditions: creeksiderealty.com

To: ild who wrote (26080)	2/8/2005 5:36:05 PM
From: KyrosL	Read Replies (1) \| Respond to of 110194

It would be very interesting if the administration manages to explicitly eliminate the implied government backing for agency bonds. A Fannie/Freddie failure followed by a government bailout will create a budget nightmare much worse than the S&L crisis in the eighties, right when the boomers start retiring and stressing SS, so the government has a great incentive to eliminate the implied guarantee -- especially now that foreigners own a lot of the bonds. Removal of government backing will force Fannie/Freddie to beef up their capital. This will dilute their stockholders, but it's a better alternative than bankruptcy. Perhaps it will even help deflate the housing bubble without catastrophic consequences.