So the twins of the mortgage world, Fannie Mae and Freddie Mac haven’t been well-behaved. They haven’t done well in their math classes- (arithmetic problems, you know) and they’ve gotten rather overweight.  Americans don’t need to worry though- Uncle Sam has promised to bail out his niece and nephew if they get in too much trouble, right?
Actually, he hasn’t, and the implications for Americans in a deflating housing market are serious. John McLeod, whose thoughtful and enlightening comments have been enjoyed by Housingdoom readers, has graciously agreed to do a series of posts on the subject for us. A little background on John:
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McLeod’s recently completed career in Information Technology followed work as a laboratory technologist and some university mathematics education. He has done independent study in patterns and classification systems, achieving results in non-standard chemical nomenclature. Lately, these same researches have been extended into Jungian function theory and Myers-Briggs typology, so it would actually be fair to characterize him as an amateur psychologist.
For the last three years, McLeod has been trying to apply his talent for recognizing large patterns to the analysis of emerging macro-economic trends in US mortgage finance.
