Monday, August 18, 2008
Foreigners selling Fannie and Freddie debt
Widening spreads will cause the end - because Fannie and Freddie need to borrow humungous piles of money.
Now Naked Capitalism has a nice post on foreigners selling Fannie and Freddie debt. That seems irrational to me - but it is still happening - and that is not good news for the GSEs.
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