Document Type
Article
Comments
This article predates the author's affiliation with Cornell Law School. It was published in the National Law Journal (July 17, 2008).
Abstract
The stated ideology of the Bush era has been that the free markets should run unfettered. In light of the U.S. government's recent intervention with Fannie Mae and Freddie Mac, it is clear that the actual ideology is the privatization of profit and the socialization of loss, at least for huge financial institutions. Our regulatory structure has to address three issues. Financial institutions may be too big, too complex or too politically connected to fail. Fannie and Freddie, unfortunately, are all three.
Date of Authorship for this Version
7-17-2008
Keywords
Federal National Mortgage Association, Fannie Mae, Freddie Mac
Recommended Citation
Reiss, David J., "Socialization of Loss" (2008). Cornell Law Faculty Working Papers. 181.
https://scholarship.law.cornell.edu/clsops_papers/181