The 2008 Financial Crisis Explained
Civics 101
00:00
What Is Liquidity?
Housing prices plummeted. People could not pay their mortgages. And these giant institutions found that many of their holdings, as in billions of dollars worth of subprime mortgages, were pretty much worthless. Fannie Mae is a company that was started by Congress to help ensure that mortgage money could flow after the Great Depression. Freddie Mac, aka Federal Home Loan Mortgage Corporation, FMCC,. It came around in the 1970s, also started by Congress so that Fannie Mae would not have a monopoly on keeping mortgage money liquid.
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