Explaining Fannie and Freddie

A great deal has happened since this explanation of how Fannie Mae and Freddie Mac hit the wall was published, let alone written. The last week's developments challenge the designation as the "mother of all bailouts. But I think (after a whole week) it still stands up as an explanation of how these government-sponsored enterprises got into such serious trouble. I was flattered when I talked to Esmael Adibi, who heads the Anderson Center for economic research and forecasting at Chapman University, and he told me he had made copies for his MBA students to consult.