Government's Role in the Housing Crisis

This chapter examines the contributions of government-sponsored enterprises like Fannie Mae and Freddie Mac to the housing market crisis before the Great Recession. It critiques the common narrative that deregulation caused the crisis, instead highlighting the flawed nature of these institutions and their risky lending practices. Additionally, it explores concepts such as moral hazard, the influence of the Community Reinvestment Act, and the implications of Federal Reserve policies on housing and economic stability.