
Why Shadow Banking Didn’t Cause the Financial Crisis
Cato Podcast
00:00
The Big Short
There was a clamor in the financial sector to absorb as much of this housing securities as possible. There was an explicit goal to increase the home ownership rate from 64% to 70% through securitization, particularly through Fannie Mae and Freddie Mac. This spanned multiple administrations, both Democrat and Republican. It was a terrible idea. And it came back to Biden.
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