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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (1335)	2/23/1999 9:17:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 1722

Mike, >>Wayne, Fannie Mae, Freddie Mac et. al. get their money from the credit markets. Their debt is backed by the US Treasury . My comments about non bank lenders were not limited to these two but they are the big players. Take a look at their balance sheets to see how little equity supports their assets ( loans). Mike<< Thanks Mike. I just recently looked at the balance sheets of Freddie and Fannie because someone recently pointed out to me how assets have grown so rapidly in recent years. Supposedly there was an especially rapid increase in assets during the credit crunch last fall. It was suggested that this was a sort of back door bailout of the system. But I still don't quite understand how this is a credit expansion since the money must be coming from somewhere or something else (another asset) unless banks have created new money. I can see that it is not direct from the banks from your explanation, but I am still a bit hazy on this topic. Wayne