Tuesday, November 20, 2007

Hello? Congress! Wake UP

So, today FreddieMAC does the right thing.

Faced with a choice between drips and drabs, they massively provision for credit and mark-to-market now, in ways that are probably going to reverse.

This penalizes them because of a whopping capital adequacy requirement.

So, instead of Congress going on break and instead of stupid policies of expanding the GRE's into million dollar loans or more, temporarily lift the capital requirements, for pity's sake.


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