Greed and Ambition: Why Fannie Mae and Freddie Mac Need to Diet

‘Guaranteed to Fail’, a book by four NYU Stern professors is reviewed in The Economist.

A shorter but heavier book, “Guaranteed to Fail”, co-written by four professors at New  York University’s Stern School of Business, one of whom used to sit on Freddie’s board, is a worthy complement to Ms Morgenson’s and Mr Rosner’s narrative-based work. It offers  two useful things that are not to be found in the other book (apart from lots of charts and statistics). The first is a comparison of America’s mortgage system with those of other  countries. Few have anything like the same level of state support, yet many have  comparable levels of home ownership and housing affordability.

Read the full review here

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One Response to Greed and Ambition: Why Fannie Mae and Freddie Mac Need to Diet

  1. chimwaza says:

    The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy–and by extension, the global financial system–has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future?

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