How we got here: It’s housing, stupid
In the past two weeks, the government took over Fannie Mae and Freddie Mac, Lehman Brothers filed for bankruptcy and Merrill Lynch sold itself to Bank of America.
If all that weren’t enough, the Federal Reserve announced late Tuesday night that it was loaning $85 billion to insurer American International Group.
None of this would have happened if the housing market had not imploded, leaving all these firms with staggering losses from their investments tied to mortgages.
If all that weren’t enough, the Federal Reserve announced late Tuesday night that it was loaning $85 billion to insurer American International Group.
None of this would have happened if the housing market had not imploded, leaving all these firms with staggering losses from their investments tied to mortgages.