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by rayiner
4647 days ago
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The "assets" column seems to be assets not accounting for liabilities. E.g. it lists Fannie Mae as having $3 trillion in assets, which is all of the mortgages it owns. But it also has $3 trillion in liabilities, which means its net equity is only about $7 billion. When you deposit $50 in a bank and the bank loans it out, the loan is an asset of the bank, but the $50 in your account is a liability. Obviously if you just look at the assets the number looks really big, but the bank's net equity is the difference between the value of the assets and what it owes depositors. |
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