The Seen and the Unseen - hosted by Amit Varma cover image

Ep 397: Larry White and the First Principles of Money

The Seen and the Unseen - hosted by Amit Varma

00:00

The Mortgage Crisis Unveiled

This chapter examines the roles of Fannie Mae and Freddie Mac as pivotal players in the mortgage market, focusing on how their practices contributed to the housing crisis. It discusses the impact of low interest rates, government mandates, and poor loan quality on the proliferation of bad mortgages, leading to widespread defaults and the eventual collapse of these institutions. Additionally, it critiques the regulatory environment and the moral hazards of the 'too big to fail' ideology that shaped the financial landscape during the 2008 crisis and beyond.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app