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GSE risks.(government-sponsored enterprises)

Almost sum of two units years ago, in a articulate utterance at a conference hosted by the agency of the Office of Federal Housing Enterprise Oversight (OFHEO), I argued that government-sponsored enterprises (GSEs) specializing in the mortgage market, especially Fannie Mae and Freddie Mac, expos the U economy to substantial risk, primarily because their capital positions are thin relative to the risks these firms assume (Poole 2003) I had a number of specific risks in mind, on the other hand did not elaborate the nature of these risks. My end here is to provide that elaboration. I will concentrate upon risks facing Fannie Mae





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