Catalogue


Guaranteed to fail : Fannie Mae, Freddie Mac, and the debacle of mortgage finance /
Viral V. Acharya ... [et al.].
imprint
Princeton : Princeton University Press, c2011.
description
x, 222 p. : ill. ; 23 cm.
ISBN
0691150788 (hbk. : alk. paper), 9780691150789 (hbk. : alk. paper)
format(s)
Book
Holdings
More Details
added author
imprint
Princeton : Princeton University Press, c2011.
isbn
0691150788 (hbk. : alk. paper)
9780691150789 (hbk. : alk. paper)
contents note
Feeding the beast -- Ticking time bomb -- Race to the bottom -- Too big to fail -- End of days -- In bed with the Fed -- How others do it -- How to reform a broken system -- Chasing the dragon.
catalogue key
7615000
 
Includes bibliographical references and index.
A Look Inside
Excerpts
Flap Copy
" Guaranteed to Fail is a down-to-earth analysis of why Fannie Mae and Freddie Mac collapsed and why housing finance is broken. The authors provide clear solutions to fixing this complex problem. This is a timely and important book."--Nouriel Roubini, coauthor of Crisis Economics: A Crash Course in the Future of Finance " Guaranteed to Fail is a comprehensive and well-written study of the role played by Fannie and Freddie in the events leading up to the financial crisis. It also suggests the way forward. This book is timely as well as insightful, and will be an influential contribution to the debate on the role of government-sponsored enterprises."--Raghuram G. Rajan, author of Fault Lines: How Hidden Fractures Still Threaten the World Economy "This is an excellent book. Guaranteed to Fail presents a cogent proposal for the resolution of the current conservatorship of Fannie Mae and Freddie Mac. It documents the historical, economic, political, and financial issues that led to the current crisis, and presents all the issues in a fair and informative manner."--Dwight Jaffee, University of California, Berkeley
Flap Copy
" Guaranteed to Fail is a down-to-earth analysis of why Fannie Mae and Freddie Mac collapsed and why housing finance is broken. The authors provide clear solutions to fixing this complex problem. This is a timely and important book."-- Nouriel Roubini, coauthor of Crisis Economics: A Crash Course in the Future of Finance " Guaranteed to Fail is a comprehensive and well-written study of the role played by Fannie and Freddie in the events leading up to the financial crisis. It also suggests the way forward. This book is timely as well as insightful, and will be an influential contribution to the debate on the role of government-sponsored enterprises."-- Raghuram G. Rajan, author of Fault Lines: How Hidden Fractures Still Threaten the World Economy "This is an excellent book. Guaranteed to Fail presents a cogent proposal for the resolution of the current conservatorship of Fannie Mae and Freddie Mac. It documents the historical, economic, political, and financial issues that led to the current crisis, and presents all the issues in a fair and informative manner."-- Dwight Jaffee, University of California, Berkeley
Flap Copy
"Guaranteed to Failis a comprehensive and well-written study of the role played by Fannie and Freddie in the events leading up to the financial crisis. It also suggests the way forward. This book is timely as well as insightful, and will be an influential contribution to the debate on the role of government-sponsored enterprises."--Raghuram G. Rajan, author ofFault Lines: How Hidden Fractures Still Threaten the World Economy "This is an excellent book.Guaranteed to Failpresents a cogent proposal for the resolution of the current conservatorship of Fannie Mae and Freddie Mac. It documents the historical, economic, political, and financial issues that led to the current crisis, and presents all the issues in a fair and informative manner."--Dwight Jaffee, University of California, Berkeley
Flap Copy
" Guaranteed to Fail is a comprehensive and well-written study of the role played by Fannie and Freddie in the events leading up to the financial crisis. It also suggests the way forward. This book is timely as well as insightful, and will be an influential contribution to the debate on the role of government-sponsored enterprises."--Raghuram G. Rajan, author of Fault Lines: How Hidden Fractures Still Threaten the World Economy "This is an excellent book. Guaranteed to Fail presents a cogent proposal for the resolution of the current conservatorship of Fannie Mae and Freddie Mac. It documents the historical, economic, political, and financial issues that led to the current crisis, and presents all the issues in a fair and informative manner."--Dwight Jaffee, University of California, Berkeley
Full Text Reviews
Appeared in Choice on 2011-10-01:
The authors of Guaranteed to Fail are specialists in applied financial and housing economics. They believe in the necessity of choosing among three options: should Fannie Mae and Freddie Mac exist. Should there be a private-public partnership of mortgage guarantees. Should government end housing subsidies. Fannie and Freddie enjoyed a competitive advantage with implied government guarantee of their debt and mandated quotas of loans to the underserved. Evidence shows the potential failure of Fannie and Freddie led to the illiquidity of housing-backed securities. The authors argue that overextension in housing came from the private sector, Congress, and government-sponsored enterprises. Other areas of concern are the poor quality of many mortgages, mortgage debt held by the federal government, no recourse loans, and a greater government role in housing than in most countries without superior results because policies were directed to symptoms of problems, not causes. The downside has been a substantial oversupply of housing, and the goal of addressing income inequality through housing affordability has failed. The authors recommend ending extensive homeownership subsidies. Tax credits provide one-time boosts to housing without lasting effects. This is a better review of housing finance than The Subprime Virus (2011), by Kathleen Engel and Patricia McCoy. Summing Up: Recommended. All readership levels. E. C. Erickson California State University, Stanislaus
Reviews
Review Quotes
No one can accuse the authors of failing to offer solutions to the problems they so thoroughly document. . . . One can only hope that some trace of the constructive approach of Guaranteed to Fail will inform the ongoing debate in Washington on the vitally important question of the future structure of the U.S. mortgage market. -- Martin S. Fridson, Financial Analyst Journal
Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance , stands out among all the others. . . . [I]t is one of the very few books to focus squarely on the ultimate cause of the crisis: US government housing policy and the role of the two government-backed mortgage giants Freddie Mac and Fannie Mae in giving effect to that policy. -- Stephen Kirchner, The Conversation
" Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance , stands out among all the others. . . . [I]t is one of the very few books to focus squarely on the ultimate cause of the crisis: US government housing policy and the role of the two government-backed mortgage giants Freddie Mac and Fannie Mae in giving effect to that policy."-- Stephen Kirchner, The Conversation (Australia)
[ Guaranteed to Fail ] is more multi-dimensional and nuanced than most other books on the bloody crossroads where real estate and banking meet. . . . [The] authors show convincingly that the GSEs' subprime lending was not a noble idea that eventually went wrong or drifted into excesses--it was a fool's errand from the beginning.
[T]he scholarly NYU tome focuses on policy mistakes and perverse incentives. . . . The Stern School economists [highlight the] 'race to the bottom' among mortgage lenders . . . [who] responded by 'moving down the credit curve of increasingly shaky mortgage loans.' . . . Bad lending begat worse lending. -- Robert J. Samuelson, Claremont Review of Books
They combine in an ideal way research and political consulting, resulting in an easy-to-read book that nevertheless has the necessary in-depth analysis. The book is rich with quotes from the past suggesting that everybody should have seen the imminent disaster.
"[T]he scholarly NYU tome focuses on policy mistakes and perverse incentives. . . . The Stern School economists [highlight the] 'race to the bottom' among mortgage lenders . . . [who] responded by 'moving down the credit curve of increasingly shaky mortgage loans.' . . . Bad lending begat worse lending."-- Robert J. Samuelson, Claremont Review of Books
[T]he authors provide a detailed template for reform.
"[T]he authors provide a detailed template for reform."-- The Economist
[T]he authors provide a detailed template for reform. -- The Economist
[T]he scholarly NYU tome focuses on policy mistakes and perverse incentives. . . . The Stern School economists [highlight the] 'race to the bottom' among mortgage lenders . . . [who] responded by 'moving down the credit curve of increasingly shaky mortgage loans.' . . . Bad lending begat worse lending.
"They combine in an ideal way research and political consulting, resulting in an easy-to-read book that nevertheless has the necessary in-depth analysis. The book is rich with quotes from the past suggesting that everybody should have seen the imminent disaster."-- Rico von Wyss, Financial Markets and Portfolio Management
"Thought-provoking!"
[T]hought-provoking . . .
"[T]hought-provoking . . ."-- Gillian Tett, Financial Times
[T]hought-provoking . . . -- Gillian Tett, Financial Times
This book should, without question, play an important role in the policy discussion of how to reform the mortgage market. Its accessible explanation of the GSEs' growth and behavior, and its detail and care in suggesting the direction for housing finance to go--and how to get it there--are its strengths. In terms of audience, the book seems more oriented toward policy discussions than academic ones. . . . As a whole, it provides a useful overview of the rise and fall of the GSEs, and is a worthwhile read for those interested in understanding the recent crisis. -- Daniel K. Fetter, Journal of Economic Literature
This book should, without question, play an important role in the policy discussion of how to reform the mortgage market. Its accessible explanation of the GSEs' growth and behavior, and its detail and care in suggesting the direction for housing finance to go--and how to get it there--are its strengths. In terms of audience, the book seems more oriented toward policy discussions than academic ones. . . . As a whole, it provides a useful overview of the rise and fall of the GSEs, and is a worthwhile read for those interested in understanding the recent crisis.
In Guaranteed to Fail , a quartet of New York University professors from its Stern School of Business, focus on the 'debacle of mortgage finance' that Fannie and Freddie helped create, and offer a plan for reform. In clear language, and with plenty of data to support their arguments, the authors provide a concise but comprehensive history of the GSEs--which alone makes their book worth reading.
"In Guaranteed to Fail , a quartet of New York University professors from its Stern School of Business, focus on the debacle of mortgage finance that Fannie and Freddie helped create, and offer a plan for reform. In clear language, and with plenty of data to support their arguments, the authors provide a concise but comprehensive history of the GSEs--which alone makes their book worth reading."-- Barrons
In Guaranteed to Fail , a quartet of New York University professors from its Stern School of Business, focus on the 'debacle of mortgage finance' that Fannie and Freddie helped create, and offer a plan for reform. In clear language, and with plenty of data to support their arguments, the authors provide a concise but comprehensive history of the GSEs--which alone makes their book worth reading. -- Barron's
No one can accuse the authors of failing to offer solutions to the problems they so thoroughly document. . . . One can only hope that some trace of the constructive approach of Guaranteed to Fail will inform the ongoing debate in Washington on the vitally important question of the future structure of the U.S. mortgage market.
"This book should, without question, play an important role in the policy discussion of how to reform the mortgage market. Its accessible explanation of the GSEs' growth and behavior, and its detail and care in suggesting the direction for housing finance to go--and how to get it there--are its strengths. In terms of audience, the book seems more oriented toward policy discussions than academic ones. . . . As a whole, it provides a useful overview of the rise and fall of the GSEs, and is a worthwhile read for those interested in understanding the recent crisis."-- Daniel K. Fetter, Journal of Economic Literature
Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance , stands out among all the others. . . . [I]t is one of the very few books to focus squarely on the ultimate cause of the crisis: US government housing policy and the role of the two government-backed mortgage giants Freddie Mac and Fannie Mae in giving effect to that policy.
"[A] valuable book on how two quasi-public companies became 'the worlds largest and most leveraged hedge fund'. . . . A balanced study, [ Guaranteed to Fail ] rises above a clash between partisans on the right--who call the companies 'ground zero' in the meltdown--and those on the left who blame deregulation and Wall Street excess. . . . Part primer, part policy prescription, the text explains in simple language what these entities are, how they got so big, and why we must fix them."-- James Pressley, Bloomberg News
[A] valuable book on how two quasi-public companies became 'the world's largest and most leveraged hedge fund'. . . . A balanced study, [ Guaranteed to Fail ] rises above a clash between partisans on the right--who call the companies 'ground zero' in the meltdown--and those on the left who blame deregulation and Wall Street excess. . . . Part primer, part policy prescription, the text explains in simple language what these entities are, how they got so big, and why we must fix them. -- James Pressley, Bloomberg News
[ Guaranteed to Fail ] is more multi-dimensional and nuanced than most other books on the bloody crossroads where real estate and banking meet. . . . [The] authors show convincingly that the GSEs' subprime lending was not a noble idea that eventually went wrong or drifted into excesses--it was a fool's errand from the beginning. -- Financial Times
"No one can accuse the authors of failing to offer solutions to the problems they so thoroughly document. . . . One can only hope that some trace of the constructive approach of Guaranteed to Fail will inform the ongoing debate in Washington on the vitally important question of the future structure of the U.S. mortgage market."-- Martin S. Fridson, Financial Analyst Journal
"[ Guaranteed to Fail ] is more multi-dimensional and nuanced than most other books on the bloody crossroads where real estate and banking meet. . . . [The] authors show convincingly that the GSEs' subprime lending was not a noble idea that eventually went wrong or drifted into excesses--it was a fool's errand from the beginning."-- Financial Times
[A] valuable book on how two quasi-public companies became 'the world's largest and most leveraged hedge fund'. . . . A balanced study, [ Guaranteed to Fail ] rises above a clash between partisans on the right--who call the companies 'ground zero' in the meltdown--and those on the left who blame deregulation and Wall Street excess. . . . Part primer, part policy prescription, the text explains in simple language what these entities are, how they got so big, and why we must fix them.
This item was reviewed in:
Choice, October 2011
To find out how to look for other reviews, please see our guides to finding book reviews in the Sciences or Social Sciences and Humanities.
Summaries
Main Description
The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future? Guaranteed to Failexplains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so,Guaranteed to Failstrikes a cautionary note about excessive government intervention in markets.
Main Description
The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future? Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.
Bowker Data Service Summary
'Guaranteed to Fail' explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations.
Table of Contents
Acknowledgmentsp. ix
Prologuep. 1
Feeding the Beastp. 11
Ticking Time Bombp. 31
Race to the Bottomp. 41
Too Big to Failp. 61
End of Daysp. 80
In Bed with the Fedp. 99
How Others Do Itp. 115
How to Reform a Broken Systemp. 132
Chasing the Dragonp. 165
Epiloguep. 178
Appendix: Timeline of U.S. Housing Finance Milestonesp. 183
Notesp. 187
Glossaryp. 207
Indexp. 211
Table of Contents provided by Ingram. All Rights Reserved.

This information is provided by a service that aggregates data from review sources and other sources that are often consulted by libraries, and readers. The University does not edit this information and merely includes it as a convenience for users. It does not warrant that reviews are accurate. As with any review users should approach reviews critically and where deemed necessary should consult multiple review sources. Any concerns or questions about particular reviews should be directed to the reviewer and/or publisher.

  link to old catalogue

Report a problem