Mises Daily
Author:
Paul A. Cleveland
Online Publish Date:
Mac’s larger sibling). These institutions were products of the New Deal. The mission of the Federal Home Loan Banks, which were created in 1932, was to provide many think that the U.S. government would prevent Freddie Mac and Fannie Mae from failing financially if changes in the market worked against their portfolio values. to the line of credit and potentially could be called on to pay much more if they failed. In fact, rightly or wrongly, investors generally believe that this is the