Fannie Mae and Freddie Mac were created by Congress to serve the American dream of homeownership. By the end of the century, they had become extremely profitable and powerful companies, instrumental in putting millions of Americans in their homes.
So why does the government now want them dead?
In 2008 the US Treasury put Fannie and Freddie into a life-support state known as "conservatorship" to prevent their failure - and worldwide economic chaos. The two companies, which were always controversial, have become a battleground. Today, Fannie and Freddie are profitable again but still in conservatorship. Their profits are being redirected toward reducing the federal deficit, which leaves them with no buffer should they suffer losses again. China and Japan are big owners of Fannie and Freddie securities, and they want to ensure the safety of their investments - which helps explain why the government is at an impasse about what to do. But the current state of limbo is unsustainable.
Based on comprehensive reporting and dozens of interviews, Shaky Ground chronicles the story of Fannie and Freddie seven years after the meltdown and tells us why homeownership finance is now one of the biggest unsolved issues in today's global economy.
Cover design by Strick&Williams
©2015 Bethany McLean (P)2015 Audible, Inc.
Engineer in St Louis, Missouri, United States
The female narrator is very good, the narrator speaks in a voice similar to the actual Bethany McLean. Why cant we get more female narrators?
The content is sharp and new. I have read many books on the financial crisis, but nothing with this much detail on the GSEs.
Guess what, there is a crime story here. The government took 80% of the equity but is acting like the government took 100% of the equity.This will likely head to the supreme court and will be a significant trial. Ichan, Ackman, and Fariholme versus the Government. We shall see.
Report Inappropriate Content