The Fannie Mae and Freddie Mac Meltdown – What Happened?
The above video is a good summary of the economic crisis and its causes – notably Fannie Mae and Freddie Mac.
Another good treatise is The Global Pool of Money. Here is the link to both the podcast and transcript. You can download a pdf transcript here.
Some other background primer links include:
So, the short version answer = GREED.
And, the FBI is now investigating the entire mess while the Congress debates corrective action, including a massive taxpayer financed bailout.
The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.
Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. Additionally, a senior law enforcement official said Lehman Brothers Holdings Inc. also is under investigation.
The inquiries will focus on the financial institutions and the individuals that ran them, the senior law enforcement official said.
Technorati Tags: Fannie Mae, Freddie Mac
2 Comments
Ling
This bailout kinda scares me, actually. $700 billion is a lot of money. What are they going to do if it doesn’t work?
Flap
The bailout is ill-conceived and poorly contrived. Our children and grandchildren will be paying off this debt long after you and I are gone.