Mark Moss traces Ginnie Mae's mortgage-backed securities from a $70 million debut in 1970 to nearly half of U.S. GDP by the 2000s housing bubble. He draws a parallel to Larry Fink's claim that AI could unlock capital at a similar scale through markets.
In 1970, the first Ginnie Mae MBS was $70 million. 8 years later, it was $15 billion a year and had more than $50 billion outstanding. Then the market kept growing through the '80s. It kept growing through the '90s. Securitization became one of the dominant ways America financed housing. Now, by the time the housing bubble blew up, it broke, residential mortgage securities had grown to nearly half of US GDP. I mean, think about that. $70 million experiment became a massive global capital market. And that's why Fink's comparison to doing this with AI, it, it matters. He's showing us how AI could tap a way bigger pool of capital than most people think.
