-
with that thirty-to-one leverage ratio,
-
the GSE's are caused to raise significantly more capital,
-
there is the prospect of significantly further support
-
for the mortgage-backed securities market,
-
whose greater health would impact
-
both the availability of credit to potential new homeowners
-
and the availability--and the health--
-
of the financial institutions that are holding their securities.
-
I think--and I will not dwell on the point for reasons of time--
-
that there is also a strong case for policy measures
-
directed at strategic intervention in near foreclosure situations to
-
promote the writing down of mortgages as alternative to foreclosure.