{"id":195394,"date":"2008-07-11T17:39:00","date_gmt":"2008-07-11T22:39:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/07\/11\/todays-gse-woes\/"},"modified":"2008-07-11T17:39:00","modified_gmt":"2008-07-11T22:39:00","slug":"todays-gse-woes","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/07\/11\/todays-gse-woes\/","title":{"rendered":"Today&#8217;s GSE Woes"},"content":{"rendered":"<p>First and foremost, understand that Fanie Mae and Freddie Mac are responsible in some manner or another for about $5 trillion in debt, or a bit more than 1\/3 of the gross domestic product of the USA, <span style=\"font-weight:bold;\">and<\/span> they account for about 55% of all mortgages in the US.<\/p>\n<p>Right now, we appear to be in the midst of a <a href=\"http:\/\/www.nytimes.com\/2008\/07\/11\/business\/11ripple.html?hp\">market panic, with their shares, and hence their ability to raise capital to cover bad debt, dropping<\/a>.<\/p>\n<p>As a result, the Treasury Department is <a href=\"http:\/\/www.nytimes.com\/2008\/07\/11\/business\/11fannie.html\">drawing up plans for a government takeover if they prove insolvent<\/a>, though they are denying any plans for an <a href=\"http:\/\/www.nytimes.com\/reuters\/business\/business-fanniemae-freddiemac.html\">iminent takeover<\/a>, though the lesson of Bear Stearns is that going concerns to flat broke can take less than 24 hours.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>First and foremost, understand that Fanie Mae and Freddie Mac are responsible in some manner or another for about $5 trillion in debt, or a bit more than 1\/3 of the gross domestic product of the USA, and they account for about 55% of all mortgages in the US. Right now, we appear to be &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,985],"tags":[],"class_list":["post-195394","post","type-post","status-publish","format-standard","hentry","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195394"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=195394"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195394\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=195394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=195394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=195394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}