Greenspan: Mortgage Debt May Be Threat

[DuctapeFatwa]

Mortgage giants Fannie Mae and Freddie Mac could pose a threat to the country's financial system if their debt is not restrained, Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) said Tuesday, urging Congress to consider capping the debt the two Fortune 500 companies can carry.


Greenspan said that the two institutions, popularly known as Fannie and Freddie, have grown to be among the largest financial institutions in the United States and now stand behind $4 trillion of home mortgages, or more than three-fourths of the single-family mortgages in the United States.


Greenspan said he believed both institutions have managed their financial risks well to date, but he said that he believed risks would rise if the two institutions allowed their debt levels to grow in the future without any restraints.


He said that "future systemic difficulties" could be considered likely and he urged Congress to take action "sooner rather than later."

http://news.yahoo.com/news?tmpl=story2&cid=509&u=/ap/20040224/ap_on_bi_ge/greenspan_mortgage_giants_2&printer=1

[Mari333]

1. Goodbye US dollar

Im going the way of Warren Buffet and going for the euros. I think..Im not very good at this investing stuff.

[DuctapeFatwa]

3. get it in gold and get it out of the US (nt)

[priller]

2. Greenspan seems to be awfully chatty lately, doesn't he?

What used to be rare snippets from the Oracle are now coming out several times a week. I wonder what's up?