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Essay text:
are broken.
Fannie Mae and Freddie Mac were set up to support the housing market. Provided they met certain standards, they helped guarantee mortgages by issuing their own debt which was backed by the government. The government guarantees allowed Fannie and Freddie to take on far more debt than a normal company. Based on this, they were supposed to use the government guarantee to reduce mortgage costs to homeowners. Instead, Fannie and Freddie used this government funding to make large profits and squeeze the private sector out.
Both Fannie and Freddie were not adequately supervised and the end result was that they strayed from their core mission...
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Common topics in this essay:
- A Formulation Of A Swot Analysis For Home Depot
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