Tuesday, November 18, 2008

Fannie and Freddie sub-prime culprits?


Lots of good data (and pretty graphs!). Long story short, Fannie and Freddie were doing fine because they largely avoided the sub-prime market (due to dastardly Democrat regulations!), then they bought a bunch of mortgage-backed securities that were inaccurately rated. Sub-prime foreclosures undercut the value of those securities, and the F&F siblings got hosed.

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