There is something strange with Fannie Mae and Freddie Mac. They were state supported institutions whose main purpose was to make it possible for people who could not afford it to buy houses.
The result was that they made the housing market unstable. They were there to hang a Damocles sword over the economy.
The excuse was that they helped poor people buy their homes. That is a very worthy cause. However, making it easier for poor people to buy houses, means that the demand increases and house prices increase. And this increase is illusory, as the prices depend on FM and FM. Once the state decides not to support them, the prices fall, and everyone loses.
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