Fannie Mae-No Politics (FNMA)

[Donotunderstand]

He knows a lot about the MBS model

Enough to write several papers - say 5-10 years back - saying such effort to create liquidity are dumb and dumber and banks should hold their paper - and issue their own bonds -- but such bonds should not be just backed by the mortgages they hold but their entire business. Putting the whole business at risk of default spreads risk and reduces appetite for a pool of JUST junk mortgages bundled as all bundles are the entire bank

This is used in other countries . It seems to work

Seems the insured MBS in central location works better and its what we know

but I do think he knows the business - he just hates it and has so written many times