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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (422957)	10/6/2008 1:41:24 PM
From: Brumar89	Respond to of 1575887

FNM and FRE are at the center of the crisis simply because they dominate the securitized mortgage market. The bad mortgages ripple through the economy causing losses to the holders, wiping out capital, spreading to the firms that insured the mortgages. Mark to market accounting (a result of a mandate for fair value acctg in Sarbanes-Oxley legislation) requires all the holders to write their loans to market (often zero now) causing massive losses even beyond the actual mortgage failures. This crisis is a made in DC crisis.