Author: alyssa m. hanson-eggebrecht

First you borrow, then you beg…

QuickPoint!

Many private banks and financial institutions are in trouble because they supplied the market with too many sub-prime mortgages. However, what has not been well understood is the Federal government’s mechanism for over stimulating sub-prime lending through government-sponsored enterprises like Fannie Mae and Freddie Mac, which together now back $5.3 trillion of mortgage debt.

Sub-prime mortgages became a viable financial tool in the US due to (more…)

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