Do you mean to say they have guaranteed 40 times the value of their collateral? I find that hard to believe.
Yes. The WSJ reported it as 60 to 1. God knows what it really is, they are exempt from SEC regulations, you know.
Yahoo currently shows it as 37 to 1.
http://biz.yahoo.com/p/f/fnm.html
Check em out vs the NASDAQ bubble...Stock wise (not business model wise) they are much worse....Guees what's in your 401 K.
http://finance.yahoo.com/q?d=c&c=&t=my&s=fnm&l=on&z=m&q=l&x=on&y=on&w=on
But that's just the tip of the iceberg. Fact is, the bond market couldn't handle a default of this size. Neither could the derivatives market. Neither could the real estate market. Or the post-Bretton Woods international fiat system.