Shaky Ground

Name: Shaky Ground
Price: 12.99 USD
Availability: InStock
Author: Bethany McLean

The Strange Saga of the U.S. Mortgage Giants

By Bethany McLean

Based on comprehensive reporting and dozens of interviews, Shaky Ground chronicles the story of Fannie Mae and Freddie Mac seven years after the 2008 economicmeltdown, and tells us why homeownership finance is now one of the biggest unsolved issues in today’s global economy—and why it must be placed on firmer ground.

$12.99

ISBN: 9780990976301
ebook ISBN: 9780990976318
On Sale: September 14, 2015
Pages: 160

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Overview

In 2008, the U.S. Treasury put Fannie Mae and Freddie Mac into a life-support state known as “conservatorship” to prevent their failure—and worldwide economic chaos. The two companies, which were always controversial, have become a battleground. Today, Fannie and Freddie are profitable again but still in conservatorship. Their profits are being redirected toward reducing the federal deficit, which leaves them with no buffer should they suffer losses again. China and Japan are big owners of Fannie and Freddie securities, and they want to ensure the safety of their investments—which helps explain why the government is at an impasse about what to do. But the current state of limbo is unsustainable.

Based on comprehensive reporting and dozens of interviews, Shaky Ground chronicles the story of Fannie and Freddie seven years after the meltdown, and tells us why homeownership finance is now one of the biggest unsolved issues in today’s global economy—and why it must be placed on firmer ground.

Praise

A Washington Post Notable Nonfiction of 2015

Porchlight Business Book Award Longlist, 2015

“Bethany McLean has written an insightful guide to one of the fascinating true-financial-crime cases of our time.” Washington Post

“Seven years after the housing crisis, a look at what happened, how well the government fix worked, and where are we now.” PBS Newshour

“In a short, lucid paperback (or e-book) from a new publishing arm of Columbia University, McLean explains how the topsy-turvy world of Fannie and Freddie came to be and why government control of them likely will limp along indefinitely as the major unresolved issue of the financial crisis.” USA Today

“An excellent new book that attempts to make sense of the senseless history of Fannie and Freddie.” Fortune

“Readers of this maddening, sharp report will rightly wonder why Fannie Mae and Freddie Mac have been allowed to survive and why we can’t do better.” Kirkus Reviews

A Washington Post Bestseller

“Bethany McLean romps through the well-intentioned founding of Fannie and Freddie, via their gradual corruption to the current unhappy limbo, with the government and hedge funds fighting over the scraps in the courts.... McLean deftly steers a sensible course through the competing claims.” Financial Times

“McLean ably describes a situation where, seven years past the brink of economic collapse, Fannie and Freddie are severely undercapitalized, faced with investor lawsuits, and caught up in political infighting that prevents either comprehensive reform or their ultimate abolition.” Publishers Weekly

“The latest very smart finance book by McLean ... [who] found a very good [topic] in our deeply flawed home mortgage system.” The National Book Review

“Based on in-depth reporting and dozens of interviews with key players in Washington and Wall Street, Shaky Ground vividly describes how we got into this unsustainable situation—and why everyone should care. This is business journalism at its best and a must-read for anyone concerned about a full recovery from the financial crisis.” Porchlight

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Coverage

Fannie and Freddie are Back, Bigger and Badder Than Ever New York Times

Government-backed mortgage lenders are awful—and essential Washington Post

The biggest remaining risk in today’s financial system, hiding in plain sight Yahoo Finance

Bethany McLean weaves a tale of Fannie Mae and Freddie Mac that enlightens, enrages, and educates Porchlight

The Shaky Ground Edition Slate Money podcast

Why mortgage giants Fannie Mae and Freddie Mac pose a huge threat to the market CNBC

The depressing reason Obama and Congress have failed to fix Fannie Mae and Freddie Mac Quartz

Business Gone Bad and the Art of Persistence Invest Like the Best podcast

🎧 Listen to our Underreported with Nicholas Lemann podcast episode with Bethany McLean

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About the Author

Bethany McLean is the co-author of the bestseller The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron with her Fortune colleague Peter Elkind. Her second book, which she co-authored with New York Times columnist Joe Nocera, is All the Devils are Here: The Hidden History of the Financial Crisis. She is a contributing editor at Vanity Fair, a columnist for Fortune.com and a contributor at CNBC. She lives in Chicago. @bethanymac12