CIAO DATE: 04/2011
March 2011
The recent financial crisis was characterized by losses in nearly every type of investment vehicle. Yet no product has attracted as much attention as the subprime mortgage. What is generally agreed is that subprime mortgages disproportionately contributed both to the severity of the crisis and to the size of losses imposed upon the taxpayer. What remains in dispute is the role of government—specifically, that of Fannie Mae and Freddie Mac—in expanding the availability of subprime mortgage credit.
Resource link: Fannie, Freddie, and the Subprime Mortgage Market [PDF] - 268K