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Traditionally, stocks have at all times gone up finally, and with 2,000% leverage you can also make lots quick. A financial firm doesn’t have a secure balance sheet unless its leverage is acceptable under extreme circumstances. Freddie doesn’t break out the numbers the same way, but given the similarities between the two, it’s possible that Freddie can be a levered lengthy guess on housing price appreciation. Freddie was based in 1970, as a competitor, nevertheless it has approximately the identical charter as Fannie, and presents the same providers. What Fannie and Freddie had been doing was artificially encouraging bids for the collateral they’d lent against

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