Why Fannie Mae and Freddie Mac Could Trigger the Next Crisis Without Reform.
(ThyBlackMan.com) The movie “The Big Short” — dramatizing the reckless behavior in the banking and mortgage industries that contributed to the 2008 financial crisis — captures much of Wall Street’s misconduct but overlooks a central player in the collapse: the federal government, specifically through Fannie Mae and Freddie Mac. These two government-created and government-sponsored enterprises encouraged lenders to issue risky home loans by effectively making taxpayers cosign the mortgages. This setup […]