Friday, June 12, 2009

guarantee loans or Mortgage pools by the federal government

that active of federal government to effect on the credit markets but doesn't contemporaneously affect the federal budget is the guaranteed mortgage pool. Guaranteed mortgage pools are loans that the federal government insures wholly or partly, or guarantees the payments of principle or interest, or both. like the off-budget agencies and federally sponsored agencies, federal loan guarantees do not show up in the federal budget. the bulk of loan guarantees has been used to support housing. in recent years, however, guarantees have been used increasingly for other purposes, such as the loan guarantees involving Chrysler and the city of new york

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