Date: January 12th, 2007

Testing the fundamental policy value equation.

12 January, 2007 (10:03) | Uncategorized |

[Continued from yesterday's GSEs’ fundamental policy value equation.]
 
Yesterday we established the GSEs’ fundamental policy value equation, and gave some exposition as to the factors that comprise each element:
 

The GSEs’ fundamental policy value equation
 
Is A > C + R?
 
Does additional Affordability exceed government Cost plus systemic Risk?

 
Okay, says the patient reader, now I understand the [...]