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Franklin Raines

And so the danger for the housing industry is if we see interest rates rise.

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So from the housing standpoint, steady as you go, I think, would be the best medicine.

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Well, I think the best form would be to put money directly in the pockets of consumers.

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The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid.

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And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.

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We think if the economy remains weak that we could see mortgage rates trail down and we think that we could see rates below seven percent into early next year.

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Well, you know, we've got a lot of stimulus in the economy already from the tax cut, from the lowered interest rates, and also from the refinancing of mortgages.

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That is - the reason for that is that home prices are only going to go up. Now, they've never gone down nationwide in our - since we've been keeping track of this.

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Well, we're just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates.

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And so we have to be careful with looking at additional stimulus that we don't provoke an increase in the bond rate and then offset a lot of the stimulus we've already got.

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