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The 2008 Financial Crisis Explained

Civics 101

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Fannie Mae and Freddie Mac Are Too Big to Fail

Fannie Mae and Freddie Mac, they also got in on the subprime mortgage buy. The problem is they did not have the money to back it up. Their regulator put them into conservatorship around Labor Day of 2008. They were allowed to fail and then AIG was bailed out. Some say that not bailing out Lehman Brothers was actually a big mistake.

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