Mortgage Market Dynamics
Fannie Mae and Freddie Mac played a pivotal role in the mortgage market, providing a safety net that ultimately masked the true risks of subprime mortgages. As underwriting standards were relaxed across the board, the extent of poor-quality mortgages became apparent only during the crisis. The failure to recognize the scale of these risky assets contributed significantly to the banking crisis, revealing the dangers of complacency in financial oversight.In this clip
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EconTalk
Charles Calomiris and Stephen Haber on Fragile by Design
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