Guaranteed to Fail by Matthew Richardson
Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance

100%

6 Critic Reviews

But while their book is turbid in places, it is more multi-dimensional and nuanced than most other books on the bloody crossroads where real estate and banking meet.
-Financial Times

Synopsis

The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future?

Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.

 

About Matthew Richardson

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Viral V. Acharya, Matthew Richardson, Stijn Van Nieuwerburgh, and Lawrence J. White are professors at the Leonard N. Stern School of Business at New York University, and are experts in applied financial economics. Acharya and Richardson are the coeditors of "Restoring Financial Stability" and "Regulating Wall Street". Van Nieuwerburgh is an expert on household finance and mortgage markets. White has studied government-sponsored enterprises for many years and served on the board of Freddie Mac from 1986 to 1989 as part of his government service as a board member on the Federal Home Loan Bank Board.
 
Published March 14, 2011 by Princeton University Press. 232 pages
Genres: Business & Economics, History, Political & Social Sciences, Professional & Technical, Law & Philosophy. Non-fiction
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Critic reviews for Guaranteed to Fail
All: 6 | Positive: 6 | Negative: 0

Financial Times

Excellent
Reviewed by Christopher Caldwell on Mar 21 2011

But while their book is turbid in places, it is more multi-dimensional and nuanced than most other books on the bloody crossroads where real estate and banking meet.

Read Full Review of Guaranteed to Fail: Fannie Ma... | See more reviews from Financial Times

The Economist

Excellent
Reviewed by The Economist on Oct 13 2011

A shorter but heavier book...co-written by four professors at New York University's Stern School of Business, one of whom used to sit on Freddie's board, is a worthy complement to Ms Morgenson's and Mr Rosner's narrative-based work.

Read Full Review of Guaranteed to Fail: Fannie Ma... | See more reviews from The Economist

Portland Book Review

Excellent
Reviewed by Norman West on Oct 01 2011

...is a scholarly work that lays the main fault for the 2007 financial failure at the feet of government- sponsored-enterprises Fannie Mae and Freddie Mac.

Read Full Review of Guaranteed to Fail: Fannie Ma...

Bloomberg

Excellent
Reviewed by James Pressley on Mar 29 2011

A balanced study, it rises above a clash between partisans on the right -- who call the companies “ground zero” in the meltdown -- and those on the left who blame deregulation and Wall Street excess.

Read Full Review of Guaranteed to Fail: Fannie Ma...

inman News

Excellent
Reviewed by TARA-NICHOLLE NELSON on Apr 04 2011

It not only provides a clear, complete history of how we as a nation got into this mortgage mess and how Fannie, Freddie and other government subsidies of homeownership...

Read Full Review of Guaranteed to Fail: Fannie Ma...

The Conversation

Excellent
Reviewed by Stephen Kirchner on May 17 2011

...it is one of the very few books to focus squarely on the ultimate cause of the crisis: US government housing policy and the role of the two government-backed mortgage giants Freddie Mac and Fannie Mae in giving effect to that policy.

Read Full Review of Guaranteed to Fail: Fannie Ma...

Reader Rating for Guaranteed to Fail
77%

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