<p>“It is amazing how financial standards just flew away.
Fannie Mae used 50 to 1 leverage. Looks to me if prices drop across the board by more than 2%, Fannie Mae is underwater.”</p>
<p>Since I wrote this I should clarify. The above would only be the case if all of Fannie Mae’s loans were 100% loan to value. and all values dropped 2%. </p>
<p>I shouldn’t be that sloppy. ;)</p>