The GSEs (government-sponsored enterprises) are large quasi-governmental financial institutions that own or insure about half of the nation's mortgages. They are fueling a housing bubble by injecting purchasing mortgages, bundling them into securities, and re-selling them or holding them. They are able to borrow to fund their activities at prefernentially low rates because of an implicit government gurantee.
- For a summary of all the news on the GSEs, see: The GSE Report (http://www.gsereport.com). This bi-weekly new service collects hundreds of news articles about mortage GSEs, Fannie Mae and Freddie Mac.
- The Atlanta Journal-Constitution quotes a California Real Estate professor that "Refinancing is over, biascally". Another financial economists quoted in the article says "High rates will eventually force housing lower".
- Bloomberg columnist and investment manager John Dorfman analyzes the financials of these two companies and shows why he is selling their stock short.
