Thursday, June 17, 2010

Fannie Mae finally de-listed from New York stock market.

The creation of Fannie Mae as part of Roosevelt's New Deal in 1938, read here, was designed to solve the problem of the Great Depression of the 1930s. Regular readers of this blog will be aware that the later mishandling of the liabilities of these companies is what I believe caused to sub-prime crisis itself leading to the the recent recession. Good news then that the pretense that they continued as viable entities up to yesterday has at last ended. More worryingly is the fact that the huge bulk of new mortgages issued in the USA this year have (in combination with various veteran associations) been issued by Fannie Mae and Freddie Mac.



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