Fannie and Freddie are feeling unwell


	Fannie and Freddie are feeling unwell

JICWyllie

7-13-2008 7:12 AM

151 views

tags:

economy, financial markets, i-crisis, i-insolvancy, i-accelleration

Add a Comment

Login to Comment. Not a member yet? Sign up

View the Top Clips from July 13, 2008

Embed This Clip In Your Site...

<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/c01bd7a1-b977-4571-a279-6ac2ced00283/F9BFEA5B-A718-4EBB-BCDA-1C2DEF0844EE/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.ft.com/cms/s/0/83999818-4f72-11dd-b050-000077b07658.html" href="http://www.ft.com/cms/s/0/83999818-4f72-11dd-b050-000077b07658.html" style="font-size: 11px;">www.ft.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ft.com/cms/s/0/83999818-4f72-11dd-b050-000077b07658.html"><P>The <A href="http://www.ft.com/cms/s/0/019a648c-4e91-11dd-ba7c-000077b07658.html" title="Freddie Mac and Fannie Mae in turmoil" target="_blank" class="bodystrong">woes</A> of Fannie and Freddie are important in themselves. But they are far more important for what they tell us about the ongoing crisis: it is still spreading. US house prices continue to fall, likely losses in the overall financial system continue to rise, credit continues to be tight, the US economy continues to be weak, household consumption is under growing pressure and oil prices are going still higher.</P><P>Meanwhile, the US Treasury and central bank are improvising desperately. The equity markets have, at last, noticed how difficult things are. Only the most optimistic would believe that the worst will soon be over. The crisis worsens, instead.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ft.com/cms/s/0/83999818-4f72-11dd-b050-000077b07658.html"> if the federal government had to place the debt of the two entities <A href="http://www.ft.com/cms/s/0/11e1683a-4f6e-11dd-b050-000077b07658.html" title="Paulson stands by Fannie and Freddie" target="_blank" class="bodystrong">on its books</A>, the gross financial liabilities of the US government would exceed 100 per cent of GDP. Fortunately, things are not as bad as that, since the assets of the two lenders will continue to have value.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/F9BFEA5B-A718-4EBB-BCDA-1C2DEF0844EE/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

Clipmarks: Home; New Clips; Top Clips; Dashboard

Popular Topics: News; Life; Science; Technology; Entertainment

Get Started: Sign Up; Install Clipping Tool; How Clipping Works; Clip-to-Blog™; ClipSearch

Tools and Resources: FAQ; ClipWeek; Top Clippers; Top Tags; Site Map

About Clipmarks: About Us; Contact; Blog; Copyright; Privacy; EULA

Search Options

Related Clips

More clips from JICWyllie

Today's Top Clips