Will the GSEs Repeat 2007 - 2009’s Large Losses?
The Stoop (NYU Furman Center)
NOVEMBER 7, 2022
12] This is not a level considered “adequately capitalized” by the regulators. Given very low unemployment and record high levels of homeowners’ equity, along with a shortage of housing units (versus the surplus when the mortgage bubble began to burst in 2007), this seems reasonable to me as an estimate.
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