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This Concept Map, created with IHMC CmapTools, has information related to: Federal Bail Out of Fannie Mae and Freddie Mac, bundled securities ???? Bear-Stearns was the first, 1929 event Stock Market Crash Leads to Depression, POWER heavily involved in bundled securities, special privelege compared to normal banks leads to PROFITS, rise in housing demand leads to 2005 Economic Boom, banks to be forced to accept risky mortgages how they had to prove they met a certain percentage of loans to targetted borowers that are naturally more risky, initially seen as something positive because they standardized securities, mortgagers don't hold on to the mortgage they sell it to Wall Street. What do they care if the mortgagee pays? ???? Fannie Mae buys 'em and bundles them saying they are safe, housing price bubble forms which is when the price of homes because of demand become greater than its future worth, Chris Dodd who got $130,000 in campaign contributions over 20 yeras, Wall Street Firms were using depositor's money to gamble with instead of their own. When their risky investments went bust they took the American saver and bank account user with them leading to families their assets. leads to Glass Steagall, bundled securities leads to PROFITS, Fannie Mae privatized in 1968, Economic stimulus effort results in 2005 Economic Boom, Economic stimulus effort results in people using low rates to flip homes to make a buck, defaults on mortgages leads to 2008 CRISIS POINT, Feds now normalizing interest rates result in drop in housing demand, lobbying leads to lower regulation, special privelege compared to normal banks such as seen as more secure an investment because the federal gov't was seen to back it if it were to collapse, POWER such as lobbying