The mess that is Fannie and Freddie is extremely confusing and honestly can't be explained in a blog setting. The next time we all meet up I'll explain. I'm sorry but I've tried to write this twice and it is just so complex that I can not write this and have it make any sense.
B-Squared
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it's all good. i do find that it is difficult to write some things out, however it seems to help my organization when i'm speaking with people! i'll look forward to talking about this over beer, and maybe i can take minutes and we can post it afterwards! :)
abraços,
AHHH but i want to know
ok, jay, if you take minutes, its all good
Ok, so the extremely quick version of this is that the US Government now guarantees $5 TRILLION worth of home mortgages. Now, Fannie and Freddie only bought high-end loans (no subprime, Alt-A, etc). Fannie and Freddie are in an extremely profitable business so if home prices become stable and go up (eventually they will) the government could have made you billions.
If you ever have some sort of beer date where you explain this, could you invite me as well?
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