The role of government should be in mortgage markets

Assignment Help Financial Management

Reference no: EM131849456

The US Federal government has historically been involved in and has assisted the mortgage markets.

Fannie Mae (FNMA) and Freddy Mac (FHLMC) are Government Sponsored Enterprises (GSEs) and as such were perceived to have low risk. In the early 2000s, Former Federal Reserve Chairman Alan Greenspan stated that these institutions ("Fannie" and "Freddie") were a source of risk to the economy because of their ties to government and their extensive use of debt to finance growth.

1) In general, discuss what you think the role of government should be in the mortgage markets. Has the government been effective in achieving its original objectives and are those objectives still relevant?

2) Specifically, discuss the role of these GSEs in contributing to the financial crisis. Consider for inclusion in your discussion some of the following points:

Do you think the GSE structure contributed to their management inefficiencies?

Do you think these GSEs should have been permitted to fail?

Do you agree with former Chairman Greenspan's comment above?

Reference no: EM131849456

Questions Cloud

Contrast bicameral and unicameral legislatures : Contrast bicameral and unicameral legislatures. What are the advantages and disadvantages of bicameral and unicameral systems?

Should this mornings shipment be returned : The printing company has an agreement with his supplier that he is to return a shipment that is 10 percent or more defective.

What would be a fair price for stock today : A company just paid a dividend of $1.30 per share. what would be a fair price for this stock today?

What is the core idea behind electoral realignment theory : What evidence do political scientists have that an electoral realignment has occurred? What are the weaknesses of realignment theory?

The role of government should be in mortgage markets : discuss what you think the role of government should be in the mortgage markets. Do you think these GSEs should have been permitted to fail?

Explain in detail the essential functions of political : Explain in detail the essential functions of political parties in terms of how they contribute to the government as well as what impact they have on citizens

Explain and critically assess the main argument in robert : Explain and critically assess the main argument in Robert Dahl's article entitled "Decision Making in Democracy: The Supreme Court as National Policy-Maker?"

Compare and contrast interest groups with political parties : Compare and contrast interest groups with political parties. Identify and explain the different direct and indirect tactics used by interest groups to influence

Explain the significance of political consultants : Identify and explain the significance of political consultants, spin doctors, and campaign managers. Describe the difference between independent expenditures

User Account

All Pages