Freddie Mac-No Politics (FMCC)

[Robert from yahoo bd]

Thanks for taking the time to respond. Real estate cycles have been going on for a long time and the boom bust cycles are a persistent characteristic.

There's no question that real estate busts cause havoc but I think that the limited capital available on the books, coupled with average ltvs in the 50's, strong underwriting, the inevitable 80 to 90 percent of GSE borrowers who will continue paying on time, stronger counterparty risk sharing partners, and the inability of the housing market to keep up with the supply necessary each year for the last 10 years to meet demand from obsolescence and population growth is more likely than not to ride out the eventual downturn.

We'll just have to wait and see what happens in the next inevitable housing crash.